The Nusantara Capital City (IKN) Authority has revealed that they have been affected by the automatic adjustment policy, resulting in a budget of Rp21 billion (approximately US$1.47 million) being blocked by Minister of Finance Sri Mulyani Indrawati.

Head of the IKN Authority, Bambang Susantono, said the total budget cut amounted to 5 percent of the total budget ceiling of the IKN authority in 2024, which is Rp434 billion.

"The Budget Implementation List (DIPA) ceiling is Rp434 billion, but there are some cuts for  Ministries/Institutions. So, the total expenditure budget becomes Rp412 billion," Bambang told a hearing with Commission II of the House of Representatives, on Monday, March 18, 2024.

Bambang said that broadly, the DIPA allocation n 2024 will be used to support two main programs, namely the strategic area development program amounting to 46.7 percent or Rp202.89 billion. Meanwhile, the remainder of Rp231.12 billion or 53.3 percent of the total budget will be used to run management support programs. Alongside the temporary budget cuts, the authority explained that this month they plan to propose an additional budget of Rp112 billion.

In addition, the authority revealed that they would submit a request for an additional budget ceiling in May 2024 amounting to Rp3.5 trillion to carry out the management and maintenance program of several facilities and infrastructure that have been completed by the Ministry of Public Works and Housing.

"This March, we plan to propose additional funding for 2024. In May, there will be further discussions, for example, maintenance of completed buildings and infrastructure," he said.

Bambang said further that the Deputy for Facilities and Infrastructure will absorb the additional budget proposal of Rp2.17 trillion, while, the Deputy for Green and Digital Transformation will absorb an additional budget proposal of Rp864.39 billion, and the Deputy for Environmental and Natural Resources will absorb Rp457.2 billion. Furthermore, the Deputy for Social, Cultural, and Community Empowerment will absorb Rp57.44 billion and the Deputy for Planning and Land will absorb Rp15.03 billion.