IKN Development Budget Realization until August 2024

The Ministry of Finance (Kemenkeu) reported that during the January-August 2024 period, the development of the Nusantara Capital City (IKN) has consumed Rp18.9 trillion (approximately US$1.2 billion).

This realization is equivalent to 43.1% of this year's budget allocation of Rp44 trillion (approximately US$2.8 billion).

"Once the infrastructure construction is completed, and the physical work handover is finished, the budget absorption will likely increase rapidly, possibly towards the end of the year," said Deputy Minister of Finance I Suahasil Nazara in a press conference on the State Budget (APBN), Monday (September 23, 2024).

The IKN development budget is used for infrastructure and non-infrastructure clusters.

Until August 2024, the realization of spending for the infrastructure cluster has reached Rp16.2 trillion (approximately US$1 billion) from a budget of Rp40.7 trillion (approximately US$2.6 billion). This fund was used for the construction of the state palace, ministries, and the IKN Authority building.

The budget in this category was also used for the construction of ASN apartment towers, defense and security facilities, ministerial houses, a hospital, and the arrangement and improvement of various other infrastructures such as the Sepaku Semoi Dam, the KIPP (Central Government Core Area) Embung, flood control, and others.

Meanwhile, spending for the non-infrastructure cluster has reached Rp2.7 trillion (approximately US$170 million) from a budget of Rp3.3 trillion (approximately US$210 million).

This budget was used for the operation of the IKN Authority, coordination, and preparation for relocation; reports and policy recommendations from ministries/agencies; and police security support.

The total budget for IKN development since 2022 has reached Rp76.5 trillion (approximately US$4.9 billion), consisting of Rp5.5 trillion (approximately US$350 million) in 2022, Rp27 trillion (approximately US$1.7 billion) in 2023, and a 2024 APBN allocation of Rp44 trillion (approximately US$2.8 billion).