News
Indonesia Has Spent US$298.3 Million for IKN
WINDONESIA May 28, 2024
President Jokowi as well as Public Works and Public Housing Minister Basuki Hadimuljono inspecting the Nusantara toll road project in Balikpapan City, East Kalimantan on Nov. 1, 2023. (Antara Photo/Hafidz Mubarak).
The Indonesian government has invested Rp 4.8 trillion (about US$298.3 million) in the construction of the country's upcoming new capital, the Nusantara Capital City (IKN), as of Apr. 30, 2024, according to Finance Minister Sri Mulyani.
Indonesia is moving its capital from the congested Jakarta to East Kalimantan Province, a major plan requiring a total investment of US$33 billion with private funding expected to cover the majority. The government plans to fund only 20 percent of the total costs and has allocated Rp 39.8 trillion for the IKN in 2024 alone.
“This means that we have only used up 12.1 percent of the Nusantara project budget ceiling so far,” Sri Mulyani told a press briefing on May 27, 2024.
The Finance Ministry categorizes the IKN project expenses into two groups, namely infrastructure and non-infrastructure. The infrastructure budget is capped at Rp36.5 trillion, with Rp 2.8 trillion already spent by late April 2024 on projects such as the state palace complex and the VVIP airport.
Meanwhile, the non-infrastructure budget is capped at Rp3.2 trillion for 2024.
“We have spent Rp 2 trillion for the non-infrastructure cluster, such as on planning and promotion, publication, and security,” Sri Mulyani said.
Government spending on the IKN has increased significantly over recent years. The project had costed around Rp 5.5 trillion in 2022, then its cost escalated to Rp27 trillion in 2023.
Indonesia is racing against time to build the IKN, as President Joko “Jokowi” Widodo aims to start working from the new capital in July 2024 and plans to celebrate Indonesia’s Independence Day on Aug. 17, 2024 in the still-incomplete city.
