President Prabowo Subianto has taken a significant step towards the development of Indonesia’s new capital, Nusantara (IKN), by allocating a substantial budget of Rp48.8 trillion (approximately US$2.98 billion) over the next five years. This decision aims to ensure the continuous progress of the core government area within the new capital, as confirmed by Coordinating Minister for Infrastructure and Regional Development, Agus Harimurti Yudhoyono, following a meeting with President Prabowo at the Presidential Palace in Jakarta.
Vision for the Future
President Prabowo’s directive emphasizes the importance of adhering to the established timeline for the development of the new capital. The initial phase of development commenced in 2022 under the presidency of Joko Widodo, with significant infrastructure projects like the Garuda Palace, Presidential Palace, and coordinating ministries’ buildings being completed. The upcoming phase, spanning from 2025 to 2029, will see President Prabowo overseeing the continuation of development efforts in Nusantara.
Multi-Sectoral Funding Approach
To support the construction of essential facilities and office ecosystems for the legislative and judicial branches in the second phase, the allocated budget will be sourced not only from the state budget but also from private sector investments. Minister Yudhoyono expressed optimism regarding the private sector’s potential to contribute positively to the development of Nusantara, highlighting the collaborative approach towards achieving sustainable progress.
Collaborative Efforts for Progress
Basuki Hadimuljono, the head of the Nusantara Capital Authority (OIKN), shared insights into the initial investments made between 2022 and 2024, amounting to Rp89 trillion from the state budget for crucial infrastructure projects. These projects encompassed the construction of toll roads, residential towers, sanitation facilities, and office spaces. Furthermore, private sector investments totaling Rp58.41 trillion have been secured as of September 2024, reflecting a shared commitment to the holistic development of the new capital.
As the development of Nusantara progresses, the collaborative efforts between the government and the private sector are poised to shape the future landscape of Indonesia’s new capital. President Prabowo’s unwavering dedication to this ambitious initiative underscores the collective vision for a sustainable and thriving urban center that embodies the nation’s aspirations for progress and prosperity.
