"Budget efficiency has no effect on it. The development of Nusantara City continues to enter the second phase from 2025 to 2028,” Nusantara Capital Authority (OIKN) head Basuki Hadimuljono stated here on Saturday.
According to the former public works and public housing minister, the central government has approved the necessary budget for infrastructure development in Indonesia’s new capital city.
The development of Nusantara is being funded by approximately Rp48.8 trillion from the state budget and is also supported by other financing schemes.
Basuki explained that phase two of the development includes constructing legislative and judicial offices, aligning with the plan for Nusantara to serve as the political capital by 2028.
In addition to the legislative and judicial offices scheduled for construction next April, banking offices and investment projects will also be built.
"OIKN has planned infrastructure development in the investment area to be built soon," he explained.
Meanwhile, public infrastructure projects, such as roads, drinking water facilities, integrated utility network facilities, and multi-utility tunnels (MUT), are still undergoing the auction process.
"The infrastructure development will be carried out at the latest after Eid. The target is to be completed in 2026, so changes will be seen in 2026 when new buildings and areas are expected to emerge," he remarked.
In the Presidential Instruction signed on January 22, 2025, President Prabowo Subianto called for budget efficiency of Rp306.69 trillion (US$18 billion) in the 2025 State Budget and Regional Budget to maintain fiscal stability and support more optimal public services.
Through the instruction, the president directed various government officials, including ministers, the Chief of the Indonesian Military (TNI), the Chief of Police, the Attorney General, governors, district heads, and mayors, to implement budget efficiency in various sectors.
The Presidential Instruction's key points include setting a budget efficiency target of Rp306.69 trillion, comprising Rp256.1 trillion from the ministries' and agencies' budget and Rp50.59 trillion from the central government's fund transfers to the regions.
The president directed that the budget should focus on improving public services rather than just redistributing funds to regions or following last year's budget pattern. (INE)
EDITED BY INE
Translator: Nyaman Bagus Purwaniawan, Muhammad Solih Januar, Y
Editor: Rahmad Nasution
Copyright © ANTARA 2025
