IDR72.3 Trillion Funneled to IKN: What Have They Built?

Funding for IKN sourced from the state budget has been increasing for at least the past two years.

Editorial Team

10 Jun 2024 - 18.45
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IDR72.3 Trillion Funneled to IKN: What Have They Built?

Illustration - Construction of the State Palace in the Archipelago Capital (IKN)./Bisnis-Presidential Secretariat

Bisnis, JAKARTA — Finance Ministry data shows that the government has spent IDR72.3 trillion over three years on developing the future capital Nusantara or IKN, including from this year's budget.

Funds from the state budget, sourced from the people, have shown an increasing trend. The Finance Ministry uses the hashtag #UangKita (our money) to emphasize that the state budget comes from the people's money and is used for the welfare of the Indonesian people.

According to the State Budget Performance and Facts (APBN KiTa) for May 2024, the budget realization for IKN in 2022 stood at IDR5.5 trillion, then further growing to IDR27 trillion in 2023 and IDR39.8 trillion this year. The total state budget allocated by Finance Minister Sri Mulyani Indrawati for IKN is IDR72.3 trillion.

This year, the government has utilized IDR4.8 trillion of the allocated budget. IDR2.8 trillion has been used for infrastructure development, with a budget ceiling of IDR36.5 trillion for infrastructure projects.

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