IKN Authority proposes additional budget of Rp29 trillion to manage state assets
This article has been translated by PwC Indonesia as part of our Indonesia Infrastructure News Service. PwC Indonesia has not checked the accuracy of, and accepts no responsibility for the content.
Investor Daily - Otoritas IKN usulkan tambahan anggaran Rp29 triliun kelola BMN
Jakarta, ID – Nusantara Capital City Authority (OIKN) is proposing an additional budget of Rp29.8 trillion for 2025. Acting OIKN Deputy Head Raja Juli Antoni said that the additional budget was proposed to manage state assets that will be handed over by the Public Works and Housing (PUPR) Ministry to OIKN.
“We noted a budget shortfall of Rp29.8 trillion that has not been allocated for 2025,” Raja Juli said at a budget discussion with Commission II at Senayan Building, quoted on Tuesday (11/6/2024).
He explained that the proposed budget increase was significantly higher compared to previous years. In 2023, OIKN received a budget ceiling of Rp285.9 billion, which increased to Rp543.3 billion in 2024. However, the budget ceiling for 2025 has decreased to Rp505.5 billion.
According to Raja Juli, this decrease is due to the budget plan still being in its baseline form, reflecting the needs and realisations of the 2023-2024 budget ceiling.
Therefore, OIKN is proposing to increase its budget for 2025 by holding a meeting with the Finance Ministry and the National Development Planning Ministry.
“This is our effort to carry out programmes in a measured manner and evaluate budget use to ensure their effectiveness and efficiency,” Raja Juli said.
He added that the proposal to increase the budget by dozens of trillions was a topic of discussion. He emphasised that this proposal reflected a real need, as OIKN will be responsible for managing the state assets.
“We are proposing a budget of Rp29 trillion. Whether it will be accepted or partially allocated to other ministries is still up for discussion,” he added.
Additional incentives
Meanwhile, Raja Juli Antoni also ensures that additional incentives will provided through the Social and Community Impact Handling (PDSK) Plus programme for citizens affected by the Nusantara Capital City (IKN) project, depending on the complexity of their situations.
He explained that citizens affected by the IKN project faced different issues in each area. According to him, the PDSK Plus programme cannot be generalised.
“Some will be relocated and provided landed houses or flats. Some farms will have their crops replaced or converted into plantations, depending on the land rights,” he stated.
He added that IKN development would prioritise the people, following the directive of President Joko Widodo. Besides that, according to him, compensations will be based on a principle of benefit replacement, not loss replacement.
“The development is for the people. Therefore, whatever happens in the field must be oriented towards the people,” he said.
Public Works and Housing (PUPR) Minister and Acting OIKN Head Basuki Hadimuljono revealed the land status in IKN would be resolved through a presidential regulation.
Minister Basuki affirmed that a presidential regulation was required for two aspects. First, to procure 2,086 hectares of land for the PDSK Plus programme.
The regular PDSK programme usually only covers planted crops, but with the PDSK Plus programme, citizens can be relocated and provided houses, based on discussions with the community.
