Indonesia Allocates Over 10 Trillion Rupiah for New Capital Development This Year

JAKARTA, KOMPAS.com – Indonesia’s Public Works and Public Housing (PUPR) Ministry has prepared a budget of 10.38 trillion rupiah ($694 million) to support the development of the country’s new capital city namely Nusantara on Borneo island in 2023.

In 2019, President Joko “Jokowi” Widodo announced the relocation of the new capital to a forested area in East Kalimantan to relieve some of the burden on Jakarta and the crowded island of Java.

The total budget ceiling for the directorate general of human settlements this year is 25.03 trillion rupiah ($1.7 billion), according to its director general, Diana Kusumastuti, during a hearing with the House of Representatives Commission V on Tuesday, Jan. 24.

"It includes (the budget used) for the construction of the Nusantara capital city with an amount of 10.38 trillion rupiah,” she said.

Also read: Indonesia’s New Capital Authority to Follow Up on Malaysian Firms Investment Plans

The budget will be spent on the development of basic human settlement infrastructure at the new capital this year.

At least 622.5 billion rupiah ($41.5 million) will be used for developing basic drinking water infrastructure, including water treatment installation (IPA) as well as drinking water transmission piping network for the Sepaku Drinking Water Supply System (SPAM).

The fund will also finance the development of Phase I of the main and secondary distribution network (JDU) for Sepaku SPAM.

Furthermore, the ministry has allocated 816.4 billion rupiah ($54.5 million) for the construction of basic sanitation infrastructure, such as wastewater treatment plants (IPAL) 1, 2, and 3 in the Central Government Core Area (KIPP).

In addition, the allocation will be utilized for constructing wastewater pipeline networks, integrated waste treatment sites (TPST) 1 KIPP, and residue backfill units for the waste management.