(Budget for the new capital's construction) will be provided from the Public Works and Public Housing Ministry's budget
Jakarta (ANTARA) - Coordinating Minister for Economic Affairs Airlangga Hartarto made clear that funding to construct the new national capital Nusantara will not be disbursed from the National Economic Recovery (PEN) fund.

"I reiterate that we have decided that Rp451.64 trillion (US$31.6 billion) of the PEN fund will be distributed to three sectors," Hartarto stated during an online press conference on activities restriction enforcement (PPKM) on Monday.

The three sectors to receive the PEN fund are the healthcare sector, Rp125.97 trillion (US$8.8 billion); the social protection sector, Rp150.8-trillion budget (US$10.5 billion), and the economic strengthening sector, Rp174.87 trillion (US$12.2 billion), the coordinating minister noted.

"From the three sectors, the fund allocated for economic strengthening will be disbursed for food resilience infrastructure, information technology, MSMEs, government investment, and taxes purposes," he revealed.

Hartarto remarked that the fund for constructing the new national capital would instead be disbursed from the Public Works and Public Housing Ministry's budget.

The government had estimated the first phase of construction to cost Rp45 trillion, and the budget will be disbursed gradually in phases depending on the construction needs and progress, he added.

"(Budget for the new capital's construction) will be provided from the Public Works and Public Housing Ministry's budget, and there will be no allocation for the new capital's construction from the National Economic Recovery fund," Hartarto remarked.

Earlier, Finance Minister Sri Mulyani Indrawati informed the House of Representatives' Commission IX legislators at a meeting on Wednesday (Jan 19) of her expectations of the new capital's construction to be partially funded by the National Economic Recovery fund.

The minister is optimistic that the PEN fund would be allocated for the first phase of construction of the new capital from 2022 until 2024 that entails developing basic infrastructure of roads, electricity and water utilities as well as telecommunication facilities.

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Translator: Kuntum Khaira R, Nabil Ihsan
Editor: Sri Haryati
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