The 2025 State Budget Law Is Ratified, Prabowo Is Confirmed To Continue IKN Development

JAKARTA - President and Vice President-elect Prabowo Subianto-Gibran Rakabuming Raka will certainly continue the construction of the Nusantara State Capital (IKN) megaproject, East Kalimantan, which was initiated by President Joko Widodo (Jokowi).

In the Draft Law on the State Revenue and Expenditure Budget (APBN) for Fiscal Year (TA) 2025 which was passed into the 2025 State Budget Law on Thursday, September 19, 2024, it is explained that IKN development is carried out in order to eradicate poverty and equity.

"The alleviation of poverty and equity, (imposed) (i) through social protection for empowerment for the acceleration of graduation, (ii) livable and affordable houses, (iii) Independent Village Program, food security, prosperous farmers, prosperous fishermen and the development of the capital city of Nusantara," reads the regulation, quoted Tuesday, September 24.

Prabowo's commitment to continue the construction of IKN in his first year in office is also reflected in the central government's allocation of expenditure in the 2025 State Budget. It is known that the IKN Authority will receive a budget ceiling of IDR 6.39 trillion for next year.

Although the allocation of the 2025 OIKN budget ceiling is still far from the additional proposal figure of Rp27.8 trillion, the Rp6.39 trillion value has increased significantly from the original indicative ceiling of Rp505.5 billion.

Meanwhile, the Ministry of Public Works and Public Housing (PUPR), which is one of the technical ministries that organizes the basic infrastructure development, IKN, also gets additional budget allocations in 2025.

Initially, the Ministry of PUPR's budget was set at IDR 75.63 trillion with an allocation for IKN of IDR 4.13 trillion.

However, the government has now officially increased the budget of IDR 40.59 trillion, of which IDR 9.11 trillion will be allocated to continue the IKN project.

Such as handling access roads within the Central Government Core Area (KIPP) for the fulfillment of housing access, construction of the western and eastern national axis roads, construction of the second phase of the football ring road as well as feeder roads in the IKN area.

Next, the completion of the IKN section 6C-1 toll road construction at the ITCI-Simpang 1B intersection, the fulfillment of the construction of IKN VVIP Airport and the construction of the IKN toll road section 1A, 1B, 5B, 6A and section 6B.

Then to support the construction of worship areas, the Office of the Ministry of PUPR, JDU and JDP SPAM Sepaku Phase II, the IKN KIPP Waste Water Pipeline, schools, markets and health centers in the ASN flat area.

Furthermore, the additional budget will also be used to continue completing the construction of 47 ASN and Hankam flat towers at IKN by the Directorate General of Housing of the Ministry of PUPR.

Thus, the total budget ceiling of the Ministry of PUPR FY 2025 reached IDR 116.22 trillion.

Meanwhile, Rp13.24 trillion of which will be allocated to support the development of IKN.