President Prabowo Subianto has ensured that the development of the Nusantara Capital City (IKN) in East Kalimantan will continue for the next five years, approving a budget allocation of Rp48.8 trillion (US$3 billion) for the period of 2025 to 2029.
The announcement regarding the continuation of the IKN project and the amount of budget allocation was disclosed after a limited Cabinet meeting chaired by the President on Monday, February 3, 2025.
“Regarding the IKN, this has also been confirmed to be continued and he (the President) himself has also confirmed that there will be a budget allocation of approximately Rp48.8 trillion (for the period of) 2025 to 2029,” Agus Harimurti Yudhoyono (AHY), Coordinating Minister for Infrastructure and Regional Development, said after the meeting.
The meeting also discussed the basic design of the area’s development and ensured that the budget allocated to the IKN Authority this year remained at the approved figure of Rp6.3 trillion, which was added by Rp8.1 trillion. The total allocation of Rp14.4 trillion is part of the 2025-2029 IKN budget of Rp48.8 trillion.
“So there are some adjustments that will definitely take time. Of course, hopefully it won’t be long before it can be finalized and of course it can be built soon,” AHY said.
Basuki Hadimuljono, Head of the IKN Authority (OIKN) cited the issue of budget savings as stipulated in Presidential Instruction (Inpres) No. 1/2025, which has an impact on the OIKN budget which was planned to be cut by more than half. On the other hand, Prasetyo Hadi, Minister of State Secretary (Mensesneg), also stated that the OIKN budget would be adjusted so that it would not be cut.
“Presidential Instruction No. 1/2025 was made before the IKN limited meeting on January 21. So, later we will send a letter to the Minister of Finance to adjust it to what was approved by the President of Rp6.3 trillion plus Rp8.1 trillion,” Basuki said.
