IKN Budget revised After DPR Rejection: Basuki Signals Potential for Further Withdrawal
Nusantara Capital City, Indonesia – Following the House of Representatives’ (DPR) approval of a revised 2025 budget ceiling for the Nusantara Capital City (IKN) of Rp 6.2 billion (approximately $390 million USD),authorities indicate the possibility of requesting additional funds. The initial proposed budget of Rp 14 trillion (approximately $880 million USD) was deemed to high by Commission II of the DPR, prompting a significant reduction.
The approved allocation breaks down to Rp 644 billion for management support and Rp 5.6 trillion for strategic area advancement. This revised figure represents a considerable decrease from the original plan, but officials suggest further budgetary adjustments may be sought to accommodate the full scope of IKN’s ambitious development goals. The IKN authority (OIKN) had initially requested Rp 73 trillion for ongoing and future projects, with Rp 3.68 trillion already allocated for developments beginning in 2025.
The DPR’s decision impacts several key infrastructure projects planned within the new capital city. Approved funding includes Rp 4.42 trillion for housing initiatives - encompassing legislative,judiciary,civil servant,and general housing – utilizing the MYC scheme between 2026 and 2028.An additional Rp 5.17 trillion is earmarked for improvements to roads in the KIPP and WP 2 areas, SPAM systems, network supply, natural resource infrastructure, irrigation, and accessibility to the judicial and legislative zones, also under the MYC scheme during the same timeframe.
A further Rp 600 billion is designated for the operation and maintenance of presidential and state palace offices, Kemenko offices 1-4, drinking water management, roads, MUTs, green spaces within KIPP, drainage systems, sanitation, and waste management.
The approved Rp 6.2 billion budget ceiling will now be formalized as the definitive budget allocation for 2025, leaving open the possibility for OIKN to submit further requests as development progresses.