Kapanlagi.com - The development of the Nusantara Capital City (IKN) in East Kalimantan is once again capturing public attention at the beginning of 2025. Various issues are drawing attention, ranging from budget blocking by the government, plans to redesign legislative and judicial buildings, to speculation regarding the potential halt of this project. Amidst this dynamic, the administration of President Prabowo Subianto is committed to continuing this ambitious project, although the new policies implemented raise several questions.
One of the most striking issues is the blocking of infrastructure budgets, which significantly impacts the pace of IKN development. The Ministry of Public Works (PU) revealed that as of early 2025, there has been no realization of the budget for this project. The policy of cutting state spending also affects various development sectors, including the crucial infrastructure needed for IKN.
However, the IKN Authority (OIKN) firmly denies rumors that this project will be halted. They emphasize that the development of IKN is still proceeding as planned, with the main focus on completing infrastructure for the judicial and legislative institutions. Nevertheless, several changes, including the redesign of government buildings, remain a topic of debate among the public.
Summarized by Kapanlagi.com from various sources on Tuesday (11/2/2025), here are the latest facts regarding the development of IKN.
1. Groundbreaking for Phase 9 Uncertain, Rp 6.5 Trillion Investment Stalled
The plan for the groundbreaking of phase 9 of the Nusantara Capital City (IKN) project remains uncertain without a confirmed schedule. The head of OIKN, Basuki Hadimuljono, revealed that an investment of Rp 6.5 trillion from the hospitality, office, and restaurant sectors is ready to be disbursed, but its implementation has been postponed pending a signal from the palace.
OIKN spokesperson, Troy Pantouw, added that they have submitted a request to the government to proceed with the groundbreaking of infrastructure projects, but so far there has been no official response from the palace.
This situation raises concerns about the future of investment in IKN, as if this uncertainty continues, private projects committed to investing in the new capital could face even longer delays.
2. Stages of Development and Infrastructure Readiness
The development of the Nusantara Capital City (IKN) is built on three main pillars: urban, infrastructure, and economy, which are interconnected. Although President Jokowi aims to complete most of the core projects by 2024, in reality, this development will continue in the long term.
The government's main focus is now on the readiness of supporting infrastructure, such as hospitals, schools, and public centers, before the full relocation of the capital. This step reflects a strong commitment to ensure a smooth transition and provide comfort for residents in the future.
3. Budget Blocking: Is the Development of IKN Affected?
The Minister of Public Works, Dody Hanggodo, revealed some disappointing news: until February 2025, the Nusantara Capital City (IKN) project has not received any realized budget. This is due to the Ministry of Finance still withholding funds for major infrastructure projects, including IKN, which has been in the spotlight.
The Secretary General of the Public Works Ministry, Mohammad Zainal Fatah, explained that this blocking is a routine policy at the beginning of the year.
However, the drastic budget cuts from Rp 110.95 trillion to Rp 29.57 trillion raise significant concerns about the impact on the IKN project. Nevertheless, the OIKN remains optimistic with a budget of Rp 14.4 trillion that is expected to proceed as planned.
To address these challenges, the Minister of Investment, Rosan Roeslani, stated that the government is actively seeking foreign investors, including Singapore, although there is still no certainty regarding the form of investment that will be made.
4. The Stalled and Closed IKN Issue: OIKN Denies
Rumors about the fate of the Nusantara Capital City (IKN) project, which is threatened to be halted, have intensified following the blocking of infrastructure budgets, sparking speculation that workers will be sent home. However, the IKN Authority (OIKN) firmly dismisses these rumors.
OIKN spokesperson, Troy Pantouw, emphasized that the development of IKN continues without any mass repatriation of workers, with the current focus on the second phase, which includes the refinement of judicial and legislative infrastructure.
Nevertheless, the challenges faced by IKN go beyond budget issues; observers argue that clarity in government policy will be the key determinant of the future of this ambitious project in the coming years.
5. Not Cut, IKN Budget Actually Increases by Rp8.1 Trillion
Amid the challenge of budget blocking, the government boldly announced an increase of Rp8.1 trillion for the development of the National Capital (IKN). This bold decision was made following a Limited Meeting with Prabowo on February 3, 2025, demonstrating the government’s determination to move forward.
With this addition, the total budget for the second phase of IKN development has now soared to Rp14.4 trillion. This fresh funding will be focused on building the legislative area, judicial facilities, and various other supporting facilities, affirming the government's commitment to realizing IKN despite facing various obstacles.
6. Redesign of Government Buildings: Do Prabowo and Jokowi Have Different Visions?
In an ambitious step towards the development of the Nusantara Capital City (IKN), President Prabowo Subianto proposed a redesign of the legislative and judicial buildings to appear more modern and sturdy.
Deputy Minister of Public Works, Diana Kusumastuti, emphasized that this change is not due to budget constraints, but rather as a form of adjustment to the vision of the new government led by Prabowo.
The desire to create more resilient and futuristic buildings has sparked speculation about a difference in taste between Prabowo and his predecessor, Joko Widodo.
Some circles argue that the previous design was not in line with Prabowo's preferences, making this adjustment a necessary step to create an IKN that aligns with new expectations.
7. Plan for Safari Park Development in IKN
Amid the uncertainty of the project, there is one new plan that is quite interesting, namely the construction of a Safari Park in the IKN area. The Minister of Public Works, Basuki Hadimuljono, stated that this project will start no later than the end of 2025 with a land area of 225 hectares.
Basuki mentioned that entrepreneur Boy Thohir has committed to investing in the development of this park. "He expressed his determination that the construction will start no later than the end of this year and will last for the next two to three years," said Basuki.
The construction of this Safari Park is expected to become one of the main attractions in IKN and attract more investors and tourists to the new capital.
8. People Also Ask
1. Is the IKN project really halted?
No. The IKN Authority has denied the issue that the project is halted. Construction continues, although there are some obstacles related to the budget.
2. Why is the IKN budget blocked?
The IKN budget has not been realized due to the Ministry of Finance's policy of temporary blocking at the beginning of the year. However, the government assures that the project will continue.
3. Is there a difference in vision between Prabowo and Jokowi in the development of IKN?
There are indications of differences in the design preferences of government buildings, which has led to a redesign plan by Prabowo's administration.
4. What is the impact of budget cuts on IKN?
Budget cuts have the potential to slow down the construction of several key infrastructures, but OIKN ensures that the project continues as planned.
(kpl/rmt)
Disclaimer: This translation from Bahasa Indonesia to English has been generated by Artificial Intelligence.