IDR 40.6 Trillion Fund Allocated in 2024 to Realize New Capital City


PROGRES.ID – Encouraging news arrives from the Indonesian government for the year 2024, as a fund of IDR 40.6 trillion has been allocated in the State Revenue and Expenditure Budget (APBN) to support the development of the new capital city and presidential office facilities. Not only that, dozens of apartment blocks will also be constructed for workers, with a completion target set for the next year. This was announced by ministers on Wednesday (August 16, 2023).

Undeniably, Jakarta has long been a densely active center experiencing the pressure of unstoppable population growth. Therefore, in 2019, the government announced plans to build a new capital city named Nusantara in East Kalimantan. This monumental project is expected to replace Jakarta and provide solutions to various challenges. However, such a significant project also entails substantial costs, with estimated total reaching $32 billion or around IDR 491.8 trillion (at the current exchange rate) upon its completion in 2045.

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The journey towards the construction of the new capital city began several years ago. The government has invested around IDR 32 trillion to build basic infrastructure, including crucial dam and toll road constructions to support the sustainability of this project.

Finance Minister Sri Mulyani Indrawati explained that a substantial amount of IDR 35 trillion will be allocated from the 2024 APBN for the Ministry of Public Works and Public Housing. This ministry is responsible for the infrastructure and housing development for civil servants.
“The supporting infrastructure will be completed by 2024,” Sri Mulyani stated on August 16, 2023.

Furthermore, the government plans to start constructing housing for about 16,000 civil servants, members of the TNI (Indonesian National Armed Forces), and Polri (Indonesian National Police) in September. They are expected to move to the new location next year. According to Minister of Public Works and Public Housing Basuki Hadimuljono, the government is committed to completing the construction of 12 out of the total 47 apartment blocks by July next year. This will coincide with the inaugural flag-raising ceremony during the Independence Day celebration in the new capital city.
“Four ministry coordinating offices and the presidential palace will be completed next year, while the flag ceremony field will be finished in July,” he stated.

This enthusiastic endeavor also encompasses the construction of four ministry coordinating offices and the presidential palace, expected to be completed next year. Additionally, the field to be used for the flag-raising ceremony next year is also scheduled to be finished in July. All of this serves as tangible evidence of the government’s commitment to addressing challenges and creating a better environment for the future.(rg)

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