Kapanlagi.com - The development project of Nusantara Capital City (IKN), which is expected to be a milestone for national progress, is now trapped in serious problems. The Minister of Public Works and Public Housing (PUPR), Dody Hanggodo, revealed the shocking fact that until now, no budget has been realized for IKN due to the blockade from the Ministry of Finance.
In his statement to the media at the Senayan Parliament Complex, Jakarta, Thursday (6/2/2025), Dody emphasized that all budgets of his ministry have been blocked, so the progress of development cannot proceed. "The realization of the IKN budget seems to be non-existent. Our budget is all blocked, so why ask where the progress is, there is no budget," said Dody.
Although this situation is quite alarming, Dody emphasized that the PUPR Ministry remains optimistic and is waiting for the release of the budget from the Ministry of Finance. He also added that once the budget can be accessed again, there will be in-depth discussions regarding the development priorities that must be prioritized.
This budget blocking is part of the government's efforts to implement a policy of efficiency in state spending as regulated in Presidential Instruction (Inpres) Number 1 of 2025.
With the aim of controlling expenditures amid existing fiscal challenges, the budget for the Ministry of Public Works and Public Housing (PUPR) for 2025, which initially reached Rp 110.95 trillion, had to be cut down to Rp 29.57 trillion after a reduction of Rp 81.38 trillion.
As a result, several infrastructure projects, including the construction of the National Capital (IKN), are threatened to be hindered due to a lack of funds. Dody, the relevant minister, stated that his team would adapt to the existing budget and is committed to maximizing the use of available resources.
The budget blocking for the Nusantara Capital City (IKN) has the potential to hinder several ambitious projects that are planned, and could even halt them. By early 2025, five new projects with a total investment of Rp 6.5 trillion were supposed to be ready to begin the groundbreaking phase.
However, the uncertainty surrounding the budget now raises significant doubts. Agung Wicaksono, Deputy for Funding and Investment of the IKN Authority, stated that both local and international investors are waiting for regulatory and budget certainty before proceeding with their investments.
One of the largest investors from Malaysia plans to invest Rp 3.9 trillion for the construction of housing, while there are also plans for a five-star hotel worth Rp 1 trillion. Unfortunately, Agung has not been able to disclose the identities of the investors involved in these projects.
In an effort to address the issue of blocked budgets, the Ministry of PUPR plans to promptly submit a request to the Minister of Finance, Sri Mulyani, for the funds to be released. Dody, a representative of the ministry, emphasized that this step will be taken after obtaining approval from the relevant parties.
"After that, I will meet again with the Minister of Finance based on the approval. Madam Minister of Finance, it has been approved, right? Please release our budget," said Dody, describing the process that his ministry will undertake.
He also opened the possibility of additional funding for the smooth running of the projects, "If necessary, there is potential for additional funding. God willing, if we can reach Rp 1,000 trillion, why not?" he added optimistically.
Amid various challenges testing resilience, the government remains optimistic about continuing the development of the National Capital City (IKN). However, the sustainability of this ambitious project is heavily dependent on the Ministry of Finance's decisions regarding budget disbursement.
Delays could raise concerns among investors, who may postpone or even withdraw from their commitments.
Meanwhile, the government faces the challenge of managing the budget wisely in increasingly tight fiscal conditions. Therefore, the implementation of efficiency measures, as mandated in Presidential Instruction 1/2025, becomes a necessity that cannot be ignored.
The IKN development budget is blocked as part of the national spending efficiency policy outlined in Presidential Instruction Number 1 of 2025. This policy aims to balance state expenditures amid challenging economic conditions.
The IKN development is still ongoing, but with several budget adjustments. The government is working to ensure that priority projects are still carried out despite funding limitations.
There is no certainty regarding the disbursement of the budget. Currently, the Ministry of Public Works and Public Housing is still waiting for a decision from the Ministry of Finance regarding the lifting of the budget block.
Investors are still waiting for regulatory and budget certainty before proceeding with their investments in IKN. This uncertainty could affect investor confidence in the project.
(kpl/rmt)
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