Monday, October 27, 2025
No Result
View All Result
Indonesia Sentinel
  • Home
  • News
  • World
  • Economic
  • Culture
  • Tech & Science
  • Home
  • News
  • World
  • Economic
  • Culture
  • Tech & Science
No Result
View All Result
Indonesia Sentinel
No Result
View All Result
ADVERTISEMENT
Home Economic

Amid Budget Cuts, Indonesia’s Parliament Quietly Approve $520 Million Boost for IKN

by Becky
2025-02-13
in Economic
A A
IKN

(IKN Authority Public Relations)

Share on FacebookShare on TwitterShare on Whatsapp
ADVERTISEMENT

Jakarta, Indonesia Sentinel — Despite ongoing government efforts to cut spending, Indonesia’s House of Representatives (DPR) has discreetly approved an additional Rp8.1 trillion ($520 million) for the development of the country’s new capital, Nusantara (IKN), in East Kalimantan.

The extra funds will go toward constructing legislative and judicial complexes as well as supporting infrastructure for the capital’s Planning Area 2 (WP 2), according to Rifqinizamy Karsayuda, Chairman of DPR’s Commission II, on Thursday, February 13, 2025.

Budget Negotiations and Presidential Approval

The Nusantara Capital Authority (OIKN), responsible for overseeing the project, discussed the budget increase in a closed-door hearing with DPR’s Commission II. The session focused on efficiency measures outlined in the 2025 State Budget Implementation List (DIPA).

RelatedPosts

Boost Electric Vehicles, Jakarta Implements Major Tax Incentives

Indonesia’s Investment Realization Reached Rp1,434.3 Trillion in Nine Months of 2025

OIKN head Basuki Hadimuljono stated that the initial DIPA budget for 2025 was Rp6.39 trillion ($410 million) but was later adjusted to Rp5.24 trillion ($340 million) following an efficiency review.

ADVERTISEMENT

This move aligns with Presidential Instruction No. 1 of 2025, which mandates reductions in overseas travel, seminars, ceremonial events, and office supplies to cut government expenses.

However, in a January 21, 2025, cabinet meeting, President Prabowo Subianto approved an additional Rp8.1 trillion ($520 million) for IKN’s development. This funding aims to accelerate construction and ensure that Nusantara becomes Indonesia’s political capital by 2028.

Balancing Budget Cuts and Infrastructure Priorities

The Rp8.1 trillion boost raises the total 2025 IKN budget request to Rp14.4 trillion ($920 million), factoring in earlier allocations. Basuki clarified that this increase reflects the real needs for ongoing infrastructure development.

To ensure smooth progress, OIKN has coordinated with the Ministry of Public Works (PU), which will continue existing infrastructure projects, while OIKN will oversee new construction.

A December 18, 2024, letter from the Minister of Public Works confirmed that the ministry and OIKN would share responsibilities to avoid overlap in the capital’s second-phase construction.

Read Also: 

Indonesia Budget Cut 2025 Impacting Research and Innovation Institutions

Political and Public Reactions

The surprise approval of additional IKN funding comes at a time when President Prabowo has been pushing for budget austerity in other sectors, even cutting government officials’ foreign travel expenses.

While the government insists the increased budget is necessary to meet IKN’s 2028 completion target, critics argue that funds could be better spent on urgent priorities such as education, healthcare, and poverty reduction.

With Indonesia’s economy facing uncertainty, the latest budget maneuver raises questions about the government’s true fiscal priorities—and whether Nusantara’s development should continue at full speed amid broader financial constraints.

(Becky)

Tags: Budget CutDPRIKNIKN newsIndonesia newsIndonesia Parliamentnew capitalOIKN
ADVERTISEMENT

Related Posts

Indonesia Carbon Credit

Indonesia Tradable Carbon Credit Potential Reach 13.4 Billion Tons, Eyes Rp127.98 Trillion Annual from Carbon Trading

2025-10-27

Jakarta, Indonesia Sentinel -- Minister of Forestry Raja Juli Antoni said that Indonesia total tradable carbon credit potential by 2050...

Indonesian Cloves

U.S. Importers Faces Shortage after FDA Imposes Restrictions on Indonesian Cloves Over Cesium-137 Contamination

2025-10-22

Jakarta, Indonesia Sentinel -- The U.S. Food and Drug Administration (FDA) has imposed temporary import restrictions on Indonesian cloves following...

Indonesian Shrimp

Thousands of Indonesian Shrimp Containers Cleared for Entry into the United States After FDA Agreement

2025-10-22

Jakarta, Indonesia Sentinel -- Thousands of containers of Indonesian shrimp en route to the United States have been cleared for...

West Java Investment

West Java Emerges as Top Investment Destination, Leads National Investment Realization in Q3 2025

2025-10-19

Jakarta, Indonesia Sentinel -- West Java recorded the highest investment realization nationwide in the third quarter of 2025, reaffirming its...

Indonesia investment

Indonesia’s Investment Realization Reached Rp1,434.3 Trillion in Nine Months of 2025

2025-10-19

Jakarta, Indonesia Sentinel -- Indonesia Investment Ministry, also known as the Investment and Downstreaming Ministry or the Investment Coordinating Board...

Indonesia State Budget Deficit

Indonesia 2025 State Budget Deficit Reaches Rp371.5 Trillion per 30 September 2025

2025-10-15

Jakarta, Indonesia Sentinel -- Indonesia state budget (APBN) recorded a deficit of Rp371.5 trillion ($22.7 billion), or 1.56% of gross...

Indonesia Debt

Indonesia Debt Rises, Reached Rp9,138.05 Trillion in June

2025-10-14

Jakarta, Indonesia Sentinel -- The Ministry of Finance revealed that Indonesia’s central government debt reached Rp9,138.05 trillion rupiah ($570 billion)...

Online Loans Debt

OJK Reports Indonesia’s Citizens Online Loans Debt Kept Increasing, Reach Rp87.61 Trillion per August 2025

2025-10-14

Jakarta, Indonesia Sentinel -- Indonesia’s Financial Services Authority (OJK) reported that the total outstanding balance or debt of online loans...

Indonesia Economic Growth

Finance Minister Purbaya Yudhi Sadewa Responds to World Bank’s 2025 Economic Growth Forecast for Indonesia

2025-10-10

Jakarta, Indonesia Sentinel -- Indonesia’s Finance Minister Purbaya Yudhi Sadewa has commented on the World Bank’s latest projection, which raised...

Fuel Shortage

Fuel Shortage Threatens Jobs at BP-AKR, Shell, and Vivo Stations in Indonesia

2025-10-05

Jakarta, Indonesia Sentinel -- Indonesian fuel retailer BP-AKR warned it may be forced to lay off workers if the government...

Load More
Next Post
Bali Weather

Tropical Cyclone Zelia Expected to Prolong Extreme Weather in Bali Region

Popular

  • yandex

    How to Watch Viral Video on Yandex: What You Need to Know

    0 shares
    Share 0 Tweet 0
  • 15 Indonesian Provinces Lead in Sex Worker Locations, West Java Ranks First!

    0 shares
    Share 0 Tweet 0
  • Stella Christie Career and Wealth, From Academia to Indonesia’s Deputy Minister

    0 shares
    Share 0 Tweet 0
  • Suku Mante, Mysterious Tribe Living in the Vast Forests of Aceh

    0 shares
    Share 0 Tweet 0
  • Cesium-137 Radiation in Cikande Measured at 875,000 Times Normal Levels, Government to Relocate Residents

    0 shares
    Share 0 Tweet 0

Recommended

various types of cyber attacks

Rising Cyber Threats in Southeast Asia, Here’s Various Types of Commonly Used Cyber Attacks!

10 months ago
Malaysian Prime Minister Corruption

Former Malaysian Prime Minister Ismail Sabri Named Suspect in Corruption Case

8 months ago
ADVERTISEMENT

Indonesiasentinel.com is an independent online news portal committed to providing accurate, in-depth, and up-to-date news about Indonesia. Since 2021, we have been a trusted source for millions of readers seeking relevant and reliable news.

Part of:

Information Page

  • About
  • Editorial
  • Privacy Policy
  • Disclaimer
  • About
  • Editorial
  • Privacy Policy
  • Disclaimer

Contact

  • contact@indonesiasentinel.com
© 2021 Indonesia Sentinel

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist

No Result
View All Result
  • Home
  • News
  • World
  • Economic
  • Culture
  • Tech & Science

© 2024 Indonesia Sentinel