The Ministry of Public Works and Public Housing (PUPR) Allocates Rp35 Trillion for IKN Development in 2024: Here's the Breakdown

The Ministry of Public Works and Public Housing (PUPR) has allocated Rp35.37 trillion (approximately US$2.3 billion based on current exchange rates) for the construction of the Nusantara Capital City (IKN) in 2024.

This figure represents 24% of the total PUPR budget ceiling in the 2024 State Revenue and Expenditure Budget (RAPBN). So, what projects will the Ministry of PUPR be undertaking in IKN next year?

PUPR Minister Basuki Hadimuljono explained that the largest allocation of funds, Rp16.67 trillion, will go to the Directorate General of Bina Marga (Road and Bridge Development).

This will be used to construct the National Axis Road on the west and east sides, feeder roads or district roads within the IKN area, access roads to the mosque in the IKN area, and the construction of an airstrip for a VVIP airport.

Furthermore, funds allocated to the Directorate General of Bina Marga will also be used for the construction of the IKN toll road on Sections 1, 3A, 3B, 5A, 5B-1, 5B-2, 6A, 6B, and 6C-1.

Next, Rp11.44 trillion will be allocated to the Directorate General of Cipta Karya (Housing and Settlement Development).

These funds will be used for the construction of a water supply installation (IPA), the Sepaku SPAM supporting dam and its pipeline network, the Integrated Waste Processing Site (TPST) I in the Core Government Area (KIPP), and buildings in the presidential palace area.

Meanwhile, the Directorate General of Housing will receive Rp5.76 trillion to build apartment buildings for civil servants (ASN) and the defense and security sector (Hankam) in IKN.

"The construction of 47 ASN and Hankam apartment buildings has already had its contracts signed, so we can start this year," Basuki explained during a working meeting with Commission V of the Indonesian House of Representatives (DPR RI) on Wednesday (August 30, 2023).

The groundbreaking ceremony for these 47 apartment buildings is planned for mid-September 2023, with an estimated construction period of 19 months. The Ministry of PUPR aims to complete the project by December 2024.

Finally, the Directorate General of Water Resources (SDA) will receive Rp1.5 trillion for the construction and infrastructure development of IKN, specifically for the continuation of Sanggai 1A River Basin (DAS) flood control in KIPP.

The Directorate General of SDA will also undertake flood mitigation in the Sepaku River, improvements and development of the Sepaku Semoi area, and the construction of reservoirs in KIPP and the Pemaluan River Basin.

(See also: Realisasi Belanja Negara Terpusat di Ibu Kota)