Government Budgets IDR 20.8 Trillion To Build Palaces To Offices At IKN

IKN Nusantara in East Kalimantan. (doc of the Ministry of PUPR)

JAKARTA - The Minister of National Development Planning/Head of Bappenas, Suharso Monoarfa said that the budget for the construction of the National Capital City (IKN) Nusantara project is already available at IDR 23.6 trillion in the 2023 budget.

The budget that has been included in the Draft Law on the 2023 State Revenue and Expenditure Budget (RAPBN) is included in the part of the ministry/institutional (K/L) budget of Rp993.2 trillion.

"The IKN allocation is included in the ceiling for K/L, including the PUPR Ministry, the Transportation Ministry, the Ministry of Environment and Forestry, then the National Police, the BKPM, and several others and a total of around Rp. 23 trillion," he said during a press conference on the Financial Note and the APBN Bill. 2023, Tuesday, August 16.

Of the total budget, said Suharso, the largest amount goes to the PUPR Ministry's budget ceiling of IDR 20.8 trillion. This budget will be used to build a state palace, office complex and basic infrastructure at IKN.

"The biggest one is in the PUPR Ministry, which is around Rp. 20.8 trillion. Indeed, this budget allocation is in accordance with the projections that we have compiled, where we hope the state budget can handle 20 percent and the rest we expect anticipation from the private sector both at home and abroad," he said.

"So beyond this IDR 23.6 trillion next year, we hope there will be participation from the private sector," he continued.

Meanwhile, Minister of PUPR Basuki Hadimuljono explained that the budget for the Nusantara IKN development project at his ministry was Rp. 20.8 trillion. This budget requirement increased by Rp5.4 trillion compared to this year.

The entire budgeting is then spread across all directorates. The Directorate General of Water Resources has budgeted the development needs of IKN at Rp1.1 trillion.

Then, the Directorate General of Highways amounted to Rp. 8.7 trillion. Meanwhile, the Directorate General of Human Settlements amounted to Rp. 10.3 trillion. Directorate General of Housing IDR 0.5 trillion. Directorate General of Construction Development Rp0.1 trillion.

Basuki said the development of the core government area would be carried out in the 2022-2024 range. He hopes that the Ministry of Finance will immediately disburse the IKN budget this year.

"At this time, hopefully the DIPA from the Ministry of Finance will be completed soon, so that the signing of the auction and the contract can be done," said Basuki.