At the same time, we must maintain the national budget deficit at a maximum of 3 percent in 2023.Jakarta (ANTARA) - Finance Minister Sri Mulyani Indrawati has said that the initial stages of the development of Indonesia’s new capital city (IKN) have been categorized as an economic recovery process.
Thus, the budget used for the development project will be sourced from the National Economic Recovery Program (PEN), she informed.
"The budget for the 2022 economic recovery program is Rp450 trillion. Its utilization has not been fully specified. Thus, the initial steps of the new IKN development may be included in the PEN program," she remarked at a press conference here on Tuesday.
However, she assured that the realization of the PEN budget will prioritize the handling of the COVID-19 pandemic, especially the provision of social assistance for reviving the national economy.
Furthermore, there will be five stages in the development of the new capital, the minister said. The first stage (2022-2024) will focus on developing infrastructure access for the new IKN, she informed.
Meanwhile, the second through the fifth stages of the development will be implemented from 2025 to 2045, she added.
The budget allocation for the new IKN development in 2023 and 2024 will be adjusted as per the development of the COVID-19 pandemic and the implementation of other events in Indonesia, such as the general elections, which are scheduled to be held in 2024, the minister said.
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"Hence, COVID-19 handling, general election implementation, and IKN development in 2022–2024 will be included in the state budget (APBN). At the same time, we must maintain the national budget deficit at a maximum of 3 percent in 2023,” she added.
According to Indrawati, the APBN will also be used for other IKN development spending, such as the construction of government office complexes and basic infrastructure, including water dams, telecommunication, roads, and electricity.
"Some of the developments will be implemented through a public-private partnership scheme, which requires support from APBN," she added.
Meanwhile, the allocation of the 2025–2045 IKN development budget will consider other medium- and long-term national needs, she said.
Earlier, National Development Planning Minister and head of the National Development Planning Agency, Suharso Monoarfa, had informed that President Joko Widodo (Jokowi) has decided to name the new capital Nusantara.
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Translator: Astrid Habibah, Uyu Liman
Editor: Rahmad Nasution
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