$2.98 Billion Budget to Propel Nusantara Capital's Development New Era

TheIndonesia.co - President Prabowo Subianto has committed a substantial budget of Rp48.8 trillion (approximately US$2.98 billion) to ensure the continued development of Indonesia’s ambitious new capital, Nusantara (IKN), particularly focusing on the core government district over the next five years. The announcement was made by Coordinating Minister for Infrastructure and Regional Development, Agus Harimurti Yudhoyono, following a meeting with the President at the Presidential Palace in Jakarta on Tuesday, as reported by Antara News Agency.

The budget allocation aligns with Prabowo's directive to adhere to the established development timeline for IKN, which commenced in 2022 under President Joko Widodo. The second phase, spanning from 2025 to 2029, will be managed by President Prabowo’s administration.

Key infrastructure projects already completed in the first phase include the Garuda Palace, Presidential Palace, and various government buildings. The focus of the second phase will be to finalize supporting facilities and create a comprehensive office ecosystem for Indonesia’s legislative and judicial branches.

In addition to public funding, the government hopes to garner private sector investment to help fund the continued development, with the expectation that the private sector will play a crucial role in the project’s success.

The government has already invested Rp89 trillion from the state budget in the early stages of development (2022-2024), establishing essential infrastructure such as toll roads, residential areas, sanitation systems, and office spaces. Private sector contributions are also significant, with Rp58.41 trillion invested by September 2024, further bolstering the city’s progress.