The IKN Development Budget Continues To Increase In 2024

Minister of Finance Sri Mulyani Indrawati. (Photo: Doc. ANTARA)

JAKARTA - The Ministry of Finance (Kemenkeu) noted that the budget for the development of the capital city of Nusantara (IKN) in 2024 was IDR 42.5 trillion, an increase of IDR 1.9 trillion when compared to last year's Financial Note which was targeted at IDR 40.6 trillion.

As for the records of our State Budget, the IKN budget ceiling in January 2024 is IDR 40.6 trillion.

This figure then fell to IDR 39.3 trillion in February 2024.

Then in March 2024, it was IDR 39.6 trillion and in April 2024 it rose again to IDR 39.8 trillion.

In May 2024, it was recorded at IDR 40.6 trillion. Furthermore, in July 2024 it was recorded at IDR 42.5 trillion.

So when compared to the 2024 financing target, the IKN budget increased by IDR 1.9 trillion.

Minister of Finance Sri Mulyani Indrawati conveyed that the realization of the IKN development budget ceiling has increased when compared to 2023.

"So if we look at the IKN 2022 budget, at that time we started various kinds, the planning design until various realization preparation activities increased very sharply in 2023 amounting to Rp27 trillion (budget ceiling) and this year in our APBN amounting to Rp42.5 trillion (budget ceiling)," he explained at the KiTa State Budget press conference, on Tuesday, August 13.

Sri Mulyani said that the total IKN budget allocation from 2022-2024 was recorded at IDR 75 trillion.

In detail, the realization in 2022 is IDR 5.5 trillion, then a significant increase of IDR 27 trillion in 2023 and IDR 42.5 trillion in 2024.

Even so, Sri Mulyani conveyed that the realization of IKN spending until July 2024 was only IDR 11.2 trillion or equivalent to 26.4 percent of the total budget allocation in 2024 of IDR 42.5 trillion.

According to him, the performance of the IKN budget will only be seen in the third to fourth quarters of 2024.

"So what has just been disbursed seems to be Rp11.2 trillion for the 2024 ceiling, which is valued at Rp42.5 trillion, but that doesn't mean that the expenditure will only be Rp11.2 trillion, there will still be absorption, usually accelerated for searches in the third quarter and in the last quarter," said Sri Mulyani.

The realization of the budget was used for the construction of buildings in the State Palace area, the Coordinating Ministry and other Ministries as well as the IKN Authority (OIKN) building.

The budget is also used for the construction of ASN and Hankam flat towers, ministerial landed houses, and IKN hospitals.

In addition, Sri Mulyani said that the additional expenditure was mainly distributed for shopping, such as VVIP airport, IKN toll road, IKN bridge road, which some of which were already functioning and some still needed to be refined.

"Then yesterday's water facility, the reservoir that we saw will have 22 reservoirs for water storage and will be increased to 30 and even 60 in addition to flood control. Also, Pak Prabowo said that it was an anticipation because it would be around the forest if there was a forest fire disaster, we also have water recovery supplies," he said.

On the same occasion, the Director General of Budget at the Ministry of Finance, Isa Rachmatarwata, conveyed the increase in the IKN budget to meet the facilities and quality of the buildings, including toll roads.

"So in the implementation in the field, several areas are found that require strengthening of their buildings and toll roads, so it needs to be added to the budget," he explained.

In addition, said Isa, the budget increase also occurred because there were several jobs that had to be completed this year.

One of them is the improvement of schools starting from elementary, junior high, high school that already exist to anticipate the move from several ASN this year.

"Then also the Puskesmas market around it is also made efforts to improve quality, improve good infrastructure so that they can anticipate the arrival of ASN this year," he said.