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.

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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.

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Meanwhile, for the development of residential areas, 1.26 trillion rupiah ($84 million) has been prepared for land development projects for urban design IA, IB, and IC; Phase I and Phase II of the development of the National Axis Area; KIPP fire protection system; as well as construction management (MK) of KIPP.

The government has also allocated 7.64 trillion rupiah ($510 million) for the construction of government buildings, including the central government building, presidential office, presidential secretariat, state palace, coordinating ministries’ headquarters, State Secretariat Ministry’s office, other ministries/agencies headquarters, state mosque, and Veranda of Nusantara area.

The budget will also be used to develop a detailed development plan for the KIPP.

In addition, 40.24 billion rupiah ($2.7 million) has been readied to finance development planning and supervision activities, such as development progress monitoring, operations of the task force, and land acquisition.

Source: State News Antara