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August 2023 IKN Development Budget Realization Only Reaches 21.8% of Target

Nabilah Muhamad 22/09/2023 12:24 WIB

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The Ministry of Finance (Kemenkeu) reported that the budget realization for the IKN development reached Rp6.4 trillion in August 2023. This amounts to only 21.8% of the allocated budget.

IKN Development Budget Realization by Cluster (August 2023)

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August 2023 IKN Development Budget Realization Only Reaches 21.8% of Target

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IKN Development Budget Realization by Cluster (August 2023)

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The Ministry of Finance (Kemenkeu) reported that the realization of the budget for the construction of the Nusantara Capital City (IKN) reached Rp6.4 trillion (approximately US$418 million) as of August 2023.

"The total budget allocation for IKN construction this year is Rp29.4 trillion. Therefore, the Rp6.4 trillion realization is equivalent to 21.8%," said Finance Minister Sri Mulyani in an *APBN Kita* press conference on Wednesday (September 20, 2023).

Sri Mulyani explained that, broadly speaking, IKN spending is used for two main functions: infrastructure cluster spending and non-infrastructure cluster spending.

For infrastructure cluster spending, the realization is only Rp4.7 trillion, or 17.7% of the allocated budget of Rp26.5 trillion.

This spending was allocated for the construction of the core government center (KIPP) state and area, residential areas for civil servants (ASN), the IKN toll road, and the duplication of the Pulau Balang Bentang bridge.

Furthermore, the government also allocated funds for the construction of the Sepaku Semoi Dam and flood mitigation in Sepaku, and flood control in the Sanggai, Pamaluan, Saluang, and Tengin river basins.

Meanwhile, the budget realization for non-infrastructure cluster development has reached Rp1.6 trillion, or 53.3% of the Rp3 trillion allocation.

Non-infrastructure spending was used for coordination and preparation for relocation; planning the relocation to IKN; policy recommendations to ministries/agencies; mapping, monitoring, and evaluation activities; Indonesian National Police (Polri) security support; and the operation of the IKN Authority (OKIN).

It should be noted that the total budget allocation for IKN in the 2022-2024 State Budget (APBN) is Rp75.5 trillion.

In detail, the realization value in 2022 was Rp5.5 trillion, the 2023 APBN allocation reached Rp29.4 trillion, and the 2024 Draft State Budget (RAPBN) allocation is Rp40.6 trillion.

"This is to prepare the IKN, so that the relocation can be carried out in August," concluded Sri Mulyani.

Editor : Erlina Fury Santika

"Disclosure: This is an AI-generated translation of the original article. We strive for accuracy, but please note that automated translations may contain errors or slight inconsistencies."

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August 2023 IKN Development Budget Realization Only Reaches 21.8% of Target

August 2023 IKN Development Budget Realization Only Reaches 21.8% of Target

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August 2023 IKN Development Budget Realization Only Reaches 21.8% of Target

August 2023 IKN Development Budget Realization Only Reaches 21.8% of Target

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