“The President has approved a development budget of around Rp48.8 trillion for IKN through 2028,” Nusantara Capital Authority head Basuki Hadimuljono informed in Sepaku, East Kalimantan, on Monday when asked about the project’s progress.
According to Hadimuljono, the funds will finance the construction of key infrastructure during the second phase of the project, and thereby lay the foundation for developing Nusantara as Indonesia’s political capital by 2028.
The development budget will be allocated annually, with Rp5.05 trillion earmarked for 2026. However, the IKN Authority has sought additional Rp16.13 trillion in funds.
“We have submitted a proposal for an additional Rp16.13 trillion for 2026, on top of the indicative ceiling of Rp5.05 trillion. This would bring the total 2026 budget to Rp21.18 trillion to keep construction on track,” he informed.
The additional funding is intended to support phase-two projects, including the construction of offices and housing for legislative and judicial branches, along with supporting infrastructure.
The proposal was submitted to the Finance Ministry through Letter No. B.132/Kepala/Otorita IKN/VII/2025, dated July 4, 2025.
Hadimuljono said that the Nusantara Capital Authority and the Ministry of Public Works aim to complete and operationalize the legislative and judicial infrastructure by 2028.
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Translator: Bagus, Azis Kurmala
Editor: Primayanti
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