IKN Spending Reaches Rp13 Trillion by October 2023

The Ministry of Finance (Kemenkeu) reported that the budget realization for the development of the Nusantara Capital City (IKN) reached Rp13 trillion as of October 2023.

This amount represents approximately 44% utilization of the total allocation of Rp29.3 trillion from the 2023 State Budget (APBN).

"Typically, especially for infrastructure, a large portion of payments will occur at the end of the year," said Isa Rachmatarwata, Director General of Budget at Kemenkeu, in an online press conference for *APBN Kita* (Our State Budget) in November 2023 (November 24th, 2023).

Isa explained that IKN spending is categorized into two main clusters: infrastructure and non-infrastructure.

Infrastructure spending reached Rp26.3 trillion as of October 2023. This allocation covers the construction of the presidential palace, the central government core area, toll roads, residential areas, the Pulau Balang bridge, and the initiation of a VVIP airport.

Non-infrastructure spending absorbed Rp3 trillion. This budget includes planning, mapping, security, and other related activities.

The IKN realization resulted in a 1.9% year-on-year (yoy) growth in ministry/agency (K/L) spending, reaching Rp768.7 trillion as of October 2023.

Besides IKN spending, Kemenkeu stated that this acceleration in K/L spending was driven by election preparations, the acceleration of priority infrastructure completion, and the disbursement of social assistance. These activities are included in central government spending, which reached Rp1,572.2 trillion.

(See also: Government States Private Investment in IKN Reaches Rp45 Trillion by 2023)