Basuki: IKN's Basic Infrastructure Budget in 2024 will reach IDR 35.45 trillion

The basic infrastructure development budget for the Indonesian capital will increase to IDR 35.45 trillion in 2024.

BIRO PERS SEKRETARIAT PRESIDEN/MUCHLIS JR

President Joko Widodo personally inspected the progress of the construction of the presidential office in the Nusantara Capital (IKN) area, East Kalimantan Province, on Friday (1/3/2024). President Jokowi checked the infrastructure development which has already reached 74 percent.

JAKARTA, KOMPAS — Ministry of Public Works and Public Housing budgeted IDR 35.45 trillion for the development of basic infrastructure for the Indonesian Capital City or IKN in 2024. This allocation will, among other things, be used for the construction of river basin control, dams and toll road construction.

During the Work Meeting of Commission V of the House of Representatives with the Ministry of Public Works and Housing (PUPR) on Monday (1/4/2024), PUPR Minister Basuki Hadimuljono explained that they had budgeted Rp 35.45 trillion for the development of basic infrastructure for the National Strategic Projects in 2024.

This figure is an increase from the IKN basic infrastructure development budget in 2023 which is IDR 24.97 trillion

This budget is spread across four directorates general (DGs), namely the DG of Water Resources, DG of Highways, DG of Spatial Planning, and DG of Housing.

"This figure is an increase from the IKN basic infrastructure development budget in 2023 which is IDR 24.97 trillion," said Basuki.

An allocation of Rp 1.58 trillion has been made for the Directorate General of Water Resources. The projects include flood control in the Sanggai river basin area in the Center of Government Core Area (KIPP), the improvement and development of the Sepaku Semoi Dam area, as well as the development of water reservoirs in KIPP and Pemaluan river basin.

The Directorate General of Highways has received a budget of Rp 16.67 trillion. Their projects include the construction of road access to a mosque in the IKN area and a logistics dock, toll roads, and the construction of a VVIP airport (on the north runway side).

The Directorate General of Human Settlements received a budget of IDR 11.44 trillion. The project includes, among other things, the construction of the presidential palace area.

The Public Works and Housing Ministry's Directorate General of Human Settlements has received a budget of IDR 11.44 trillion. Its projects include the development of the presidential palace area, the IKN authority office, and government infrastructure facilities.

Meanwhile, the Directorate General of Housing has obtained a budget of Rp 5.76 trillion. Its projects, among others, include the construction of ministerial housing and the continuation of the construction of state civil apparatus (ASN) flats.

ARSIP KEMENTERIAN PERHUBUNGAN

Minister of Transportation Budi Karya Sumadi (center) is reviewing the construction of the Nusantara Capital Airport in East Kalimantan, Wednesday (24/1/2024).

Malaysian cooperation

Previously, the IKN Authority was exploring investments from Malaysia in the development of housing and education in IKN Nusantara. The potential investors from Malaysia are IJM Corporation Berhad, Maxim Global Berhad, and Limkokwing University of Creative Technology. They have already visited IKN.

IJM and Maxim are currently in process as potential initiators in the Government and Business Entity Cooperation (KPBU) scheme in the housing sector. Limkokwing University plans to invest in the higher education sector to support the education ecosystem in the archipelago.

Also read: Calculating when President Jokowi will have an office at IKN

The Malaysian Ambassador to Indonesia, Dato' Syed Md Hasrin Tengku Hussin, expressed his hope for other Malaysian companies, especially those from Sabah and Sarawak, to take advantage of investment opportunities in IKN and share their experiences.

This step is expected to contribute to strengthening relations between the two countries, especially considering the closeness of Indonesia-Malaysia as neighboring countries.

During a visit initiated by the Indonesian Investment Ministry, Ambassador Hasrin and his entourage, accompanied by Deputy for Funding and Investment of the IKN Authority, Agung Wicaksono, conducted a field survey in various potential locations designated for business activities of Malaysian investors.