The Nusantara Capital City Authority (OIKN) denied reports that the construction of the new capital city had stopped and workers would be sent back to their home regions due to budget efficiency.
Troy Pantouw, Spokesperson for OIKN and Special Staff to the Head of OIKN for Public Communications, emphasized that the IKN development project is still running according to plan.
“The second phase of the IKN development program (2025-2029) aims to prepare facilities and infrastructure to make it the political capital of the Republic of Indonesia in 2028,” Pantouw said on Friday, February 7, 2025.
He cited that the second phase of development would focus on developing the judicial and legislative ecosystem and other supporting infrastructure.
In addition, OIKN also denied the issue of returning IKN workers to their regions of origin.
“It is not true that there is information that workers will be mobilized to their respective areas of origin,” Troy said.
Previously, Minister of Public Works Dody Hanggodo revealed that until now the IKN development budget for 2025 has not been realized due to budget efficiency at the Ministry of Public Works, which reached Rp81.38 trillion (US$5 billion), leaving Rp29.57 trillion for this year.
Through this official statement, OIKN emphasized that the construction of the new capital city continues according to schedule and has not been stopped as rumored.
Previously, the government has set budget requirements with a financing scheme consisting of:
1. State Budget (APBN): Rp48.8 trillion (US$294 million);
2. Government and Business Cooperation Scheme (KPBU): Rp60.93 trillion;
3. Private investment: Rp6.49 trillion (projected until February 2025).
