Budget Not Cut, IKN Development Continues

JAKARTA, KOMPAS – Although there were plans circulating to cut the budget of the Nusantara Capital Authority by around 75 percent, President Prabowo Subianto ensured that development in the IKN continues. The IKN Authority will also promptly send a letter to the Minister of Finance Sri Mulyani.

The certainty of no budget cuts for OIKN was obtained in a closed meeting led by President Prabowo Subianto at the Merdeka Palace, Jakarta, on Monday afternoon (3/2/2025). Present at the meeting were, among others, the Coordinating Minister for Infrastructure and Regional Development Agus Harimurti Yudhoyono, Minister of Public Works Dodi Hanggodo, Deputy Minister of Public Works Diana Kusumastuti, Head of OIKN Basuki Hadimuljono, and special staff of OIKN in the field of development planning Imam Santoso Ernawi.

"So, Presidential Instruction Number 1 of 2025 was made before the limited meeting on the new capital city on Sunday, January 21. So later we will send, we have been asked to send a letter to the Minister of Finance to adjust, in accordance with what was approved by the President, Rp 6.3 trillion plus Rp 8.1 trillion," said Basuki after the meeting at the Presidential Palace Complex.

Therefore, Basuki ensures that all construction of office buildings for the House of Representatives, the People's Consultative Assembly, the Regional Representative Council, as well as the Supreme Court, the Constitutional Court, and the Judicial Commission will commence in 2025. Not only office buildings, but all supporting infrastructure for legislative and judicial institutions, such as housing and access roads, will also be built promptly.

Previously, as a result of efficiency measures, the OIKN budget was cut by Rp 4.8 trillion from the initial Rp 6.3 trillion. Acting Deputy for Infrastructure of OIKN, Danis Sumadilaga, confirmed this on Sunday (2/2/2025). At that time, Danis stated that OIKN was still evaluating which projects would be postponed.

However, with the certainty of the IKN development commitment from President Prabowo, Basuki emphasized that the continuation of development in IKN will not be hindered. No projects will be postponed.

Thus, the budget allocation for OIKN in 2025 is IDR 6.3 trillion with an additional budget agreed upon at the meeting on January 21 amounting to IDR 8.1 trillion. Therefore, OIKN has a budget of IDR 14.4 trillion, which is part of the budget allocation for the second phase of IKN development or the 2025-2029 period amounting to IDR 48.8 trillion.

During the second phase of IKN development, infrastructure will be built for judicial institutions, legislative institutions, as well as access to the development area (WP) 2 of IKN.

The design of the legislative building was also discussed in the meeting this Monday. President Prabowo, according to Basuki, has already approved it. "It is now being finalized and we will assist him again through Mr. Coordinating Minister (for Infrastructure and Regional Development)," he said.

Meanwhile, throughout the first phase of IKN development in 2022-2024, Rp89 trillion was allocated. This cost is used for the construction of toll roads, 47 residential towers for state civil servants, provision of drinking water, sanitation, reservoirs, retention ponds, and offices.

President Prabowo, as previously stated by the Head of the Presidential Communications Office Hasan Nasbi, will have an office in the IKN starting in 2028, when the IKN can function as a political capital. For that, the executive office, legislative office, and judicial office must be available in the IKN.

In the ranks of the Coordinating Ministry for Infrastructure and Regional Development, according to Agus Harimurti, budget cuts occurred. Therefore, adjustments and determination of priorities were made.

"It doesn't mean that infrastructure is put in second place, in fact we have to reprioritize, at least make adjustments," said Agus Harimurti.

Dodi Hanggodo added that the PU Ministry will support food self-sufficiency. Therefore, the construction of irrigation channels and regional roads will still be proposed. "So gradually, God willing, there will be no changes to our programs going forward in 2025," said Dodi.