Basuki to Urge Sri Mulyani Not to Cut IKN Development Budget
JAKARTA, investortrust.id – Basuki Hadimuljono, the head of the authority overseeing the development of Indonesia's new capital, is seeking to ensure funding for the ambitious project remains untouched despite a recent government directive to reassess spending, highlighting the project's importance to the incoming administration.
This official plans to formally request that the finance minister maintain the previously approved budget, which includes a significant boost for developing key governmental zones within the new capital city.
Nusantara Capital Authority (OIKN) Chief Basuki Hadimuljono planned to send a letter to Finance Minister Sri Mulyani Indrawati, requesting that the budget for OIKN and the construction of Indonesia’s new capital (IKN) remain intact despite the issuance of Presidential Instruction (Inpres) No. 1 of 2025 which orders widespread cuts across ministries and government institutions.
Basuki explained that the 2025 state budget (APBN) allocates Rp 6.3 trillion ( $397 million) for OIKN. However, before Inpres 1/2025 was issued, President Prabowo Subianto approved an additional Rp 8.1 trillion for the development of the judicial and legislative districts in IKN, bringing the total 2025 allocation to Rp 14.4 trillion.
“We have been instructed to formally request the Finance Minister to align the budget with what was approved by the President—Rp 6.3 trillion plus Rp 8.1 trillion,” Basuki said after a closed-door meeting at the Presidential Palace in Jakarta on Monday, Feb 3, 2025.
Presidential Directive for Immediate Action
Basuki emphasized that President Prabowo specifically directed him to submit the request. “We will send the letter to the Finance Minister tomorrow, in line with the President’s instructions,” he said. The letter will also be copied to State Secretary Minister Prasetyo Hadi, who will review it before it is sent to Sri Mulyani.
“This request aligns with the official minutes from the January 21 meeting, which have just been finalized by the Cabinet Secretary,” Basuki added.
Government's Commitment to IKN Development
Meanwhile, Coordinating Minister for Infrastructure and Regional Development Agus Harimurti Yudhoyono (AHY) stated that during the meeting, President Prabowo reviewed the progress of IKN construction. The government remains committed to the project while prioritizing national development goals.
“We are focusing on food, energy, and water security, alongside improving the education and healthcare sectors and reducing poverty. The free nutritious meal program is also expected to enhance the well-being of future generations,” AHY said.
However, he clarified that prioritizing social programs does not mean infrastructure development will be sidelined. Instead, the government is ensuring projects align with strategic priorities.
For IKN, AHY confirmed that President Prabowo has approved a total budget of Rp 48.8 trillion for the 2025–2029 period.
“The funds will be allocated according to the established timeline and plan. For the legislative and judicial districts, some aspects still need refinement,” he concluded.