Govt allocates Rp1.7 trillion for new capital development this year

Govt allocates Rp1.7 trillion for new capital development this year

Documentation - Negara Rimba Nusa’s design won the new capital design contest organized by the Public Works and Public Housing Ministry in Jakarta on December 13, 2019. (ANTARA/Aji Cakti/pri)

The budget fund for the Public Works and Public Housing Ministry, the Transportation Ministry, and the Agrarian and Spatial Planning Ministry amounts to Rp800 billion and the budget for project development fund (PDF), classified as non K/L (non-minis
Jakarta (ANTARA) - A budget of Rp1.7 trillion has been allocated for this year for the development of the new capital of Indonesia in East Kalimantan, Finance Minister Sri Mulyani Indrawati disclosed on Thursday.

The budget fund has been divided for each ministry and government agency or non-ministerial government agency, she said.

"The budget fund for the Public Works and Public Housing Ministry, the Transportation Ministry, and the Agrarian and Spatial Planning Ministry amounts to Rp800 billion and the budget for project development fund (PDF), classified as non K/L (non-ministerial government agency), amounts to Rp900 billion," the minister informed at an online press conference on the state budget here on Thursday.

The ministries and non-ministerial government agencies will use the funds to make preparations for the development of the new capital, in accordance with their respective tasks, she added.

"The budget is always found at each of the K/L (ministries/institutions). The budget fund at the Public Works and Public Housing Ministry will be used to prepare various basic infrastructures there," she said.

Meanwhile, Presidential spokesperson Fadjroel Rachman said the budget fund for the development of the new capital city accounts for just one percent of the total budget of Rp500 trillion allocated in the fiscal budget under the state budget. The remaining budget needs for the capital city project will be met through various alternative financing sources, he added.

"Insya Allah (God willing), it will need a sizable amount of fund at around Rp500 trillion, and only one percent of the fund will be taken from the state budget, and the rest will come from various financing sources," he said.

The government is hoping to perform the groundbreaking for the construction of the new capital city in 2021. Minister of National Development Planning and head of the National Development Planning Agency (Bappenas), Suharso Monoarfa, is aiming to hold the commemoration of Indonesia's independence on August 17, 2024 at the new capital.

The new Indonesian capital will be built on 256 thousand hectares of land, of which 5,600 hectares will be developed into a government zone. 

Related news: Environment main factor in new capital city development: Bappenas
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