Good Or Bad News? IKN Development Of Rp45 Trillion Will Not Be Taken From The PEN Fund But From The PUPR Budget

Minister of Finance Sri Mulyani and Minister of PUPR Basuki Hadimuljono when visiting the location of the IKN development center. (Photo: Doc. Ministry of Finance)

JAKARTA – The polemic that had arisen regarding the use of the 2022 National Economic Recovery (PEN) funds as a source of the State Capital Development budget (IKN) seems to have begun to show a bright spot. The government through the Coordinating Minister for the Economy Airlangga Hartarto finally confirmed this.

"Now there is no theme (PEN funds) for IKN (development)," he said during a virtual press conference related to the development of PPKM status, Monday, January 24.

According to Airlangga, the IKN development budget in the early stages will be taken from the spending ceiling of the Ministry of Public Works and Public Housing (PUPR) for this year's period.

"So the funds (which will be used) come from PUPR," he said.

Airlangga added that the initial stage of the IKN project would follow developments in the field and be determined based on the priority scale of the work. Likewise with the amount of budget issued.

"For this first phase, Rp 45 trillion is needed. However, these funds are funds that are gradually (used) depending on the needs and progress," he asserted.

Previously, after the ratification of the IKN Law, the Minister of Finance (Menkeu) Sri Mulyani had said that the IKN development budget was sought to be included in the 2022 PEN scheme for economic strengthening clusters which had a ceiling of Rp. 178.3 trillion.

"So we will design this (IKN development budget) later for 2022, because as is known in 2022 there will be a package for economic recovery (PEN) which has not yet been fully specified. So later this might be included as part of the economic recovery program as well as the momentum for IKN development," said the Minister of Finance on Tuesday, January 18.

However, the plan of the state treasurer was criticized by a member of Commission XI DPR from the Democratic Faction, Marwan Cik Asan, who reminded the government that the PEN funds were actually intended to overcome the impact of the COVID-19 pandemic.

"I remind you that Perpu Number 1 of 2019 which becomes Law Number 2 of 2022, Article 11, very clearly states that the PEN program is intended to protect, maintain and improve the economic capacity of business actors from the real sector, the financial sector in running their business. ," said Marwan in a working meeting with Finance Minister Sri Mulyani on Wednesday, January 19 at the Senayan Parliament Complex, Jakarta.

Citing information shared by the Ministry of Finance, it is stated that the 2022 PEN budget amounts to Rp455.62 trillion. This figure is spread to three main clusters, namely health of Rp. 122.5 trillion, social protection (perlinsos) of Rp. 154.8 trillion, and the economic strengthening cluster of Rp. 178.3 trillion.