The Indonesian government has realized Rp11.2 trillion of the allocated budget for the development of the Nusantara Capital City (IKN) as of July 2024, marking 26.4 percent of the total budget allocation of Rp42.5 trillion (US$2.7 billion) for the year.
“This figure does not indicate the final expenditure, as significant disbursements are expected in the third and fourth quarters of the year,” Finance Minister Sri Mulyani Indrawati told a media conference on the monthly budget report APBN Kita on Tuesday, August 13, 2024.
Sri Mulyani cited that the Ministry of Public Works and Housing (PUPR) has secured around 108 construction contracts worth Rp84.2 trillion, although not all have been disbursed. She clarified that contracted amounts are not immediately paid out; payments are made upon completion of deliverables or as per contract terms.
Sri Mulyani also revealed that the total budget allocation for IKN from 2022 to 2024 reached Rp75 trillion. The realization in 2022 was Rp5.5 trillion, which increased significantly to Rp27 trillion in 2023.
For 2024, the realized budget for infrastructure clusters stands at Rp9 trillion out of the Rp39.3 trillion allocation. This funding has been directed towards the construction of key government buildings, including those in the Presidential Palace area, ministry complexes, and the IKN Authority’s headquarters.
Additional projects include the construction of Civil Servants and Defense ministry apartment towers, ministerial residences, and the IKN hospital.
In addition to these infrastructure projects, the budget also covers essential facilities such as VVIP amenities, IKN toll roads, and bridges, many of which are already operational but require further refinement.
Water infrastructure projects are also underway, with plans to increase the number of water reservoirs from 22 to potentially 60.
For non-infrastructure clusters, Rp2.2 trillion has been realized from a budget of Rp3.3 trillion.
These funds are being utilized for planning, coordination, and preparations for the capital’s relocation, including promotions and public awareness campaigns.
Additionally, this budget supports mapping, monitoring, evaluation, and the operational activities of the IKN Authority.
