The Government Has Allocated Rp 89 Trillion For The Development Of The New Capital City Until 2024

The head of the Nusantara Capital Authority (OIKN), Basuki Hadimuljono, reported that the government has allocated a budget of Rp 89 trillion from the State Revenue and Expenditure Budget (APBN) by 2024. This budget is being used to build toll roads, housing, drinking water facilities, sanitation, reservoirs, retention ponds, office buildings, secretariat offices, and places of worship in the new capital. He presented this report to President Prabowo Subianto at the Presidential Palace in Jakarta on Tuesday, January 21, 2025. "We reported that from the initial phase of 2022 to 2024, the APBN has invested Rp 89 trillion in toll roads, 47 housing towers, drinking water, sanitation, reservoirs, retention ponds, office buildings, secretariat offices, and places of worship like mosques, basilicas, and churches," said Basuki.

Meanwhile, private sector investments reached Rp 58.41 trillion by September 2024. Some infrastructure projects funded by this budget are already operational, while others are in the design phase. By 2028, Prabowo aims for the new capital to become the political center. Therefore, his team is tasked with completing the judicial and legislative ecosystems. Basuki noted that these ecosystems were previously designed by the Ministry of Public Works and Housing (PUPR). However, Prabowo requested a review of the design. "He asked for it to be reviewed again. We will form a design team with the Ministry of Public Works and OIKN, which can be guided by the President for future directions," explained Basuki. Additionally, Basuki mentioned that Prabowo has approved a budget of Rp 48.8 trillion for the development of the Nusantara Capital (IKN) over the next five years. This funding is essential to complete the legislative and judicial complex and its supporting ecosystem, including improving access to the Planning Area (WP) II. "Because we are currently in WP1 (in the first phase from 2022-2024), this is moving to WP2."

Included in the Rp 48.8 trillion is funding for the maintenance and management of the infrastructure and facilities completed in the initial phase, he explained. Additionally, Basuki mentioned that there is a project for the new capital city funded through a Public-Private Partnership (PPP) scheme worth Rp 60.93 trillion. This PPP project is already in progress and includes 97 apartment towers and 129 landed houses. There are also 6 PPP projects for the construction of roads and a multi-utility tunnel spanning 138.6 kilometers in the Central Government Core Area (KIPP). "So far, only part of the work has been done; we will continue with the new projects under the PPP. There is also one more PPP for a solar power plant, which now has 50 MW that was recently inaugurated by the President," Basuki concluded.

Tag: APBN Nusantara Capital Authority OIKN