
TEMPO.CO, Jakarta - Executive Director of the Institute for Development of Economics and Finance (INDEF), Esther Sri Astuti, said the construction of Nusantara Capital City, or IKN burdens the State Budget. Esther said other programs such as President-elect Prabowo Subianto’s free meal program also burden state funds, but no more than the new capital project.
"If asked to choose between the free lunch program or IKN, I’d choose free lunch," she said on Wednesday, July 10, 2024.
Esther explained that the Prabowo-backed program at least boosts public consumption which could improve GDP or economic growth.
Indef Big Data’s team analysis showed that 78 percent of netizens said IKN is a burden to the State Budget due to the slow private investment progress. The government initially promised to only spend about 20% of state funds of the total Rp466 trillion needed for IKN.
However, the number will potentially swell up, as the IKN Authority has submitted an additional Rp29.8 trillion of funding for 2025. Esther said the government must reconsider the capital transfer. She’s hesitant about whether the project proposed by President Joko Widodo or Jokowi will push Indonesia to finally become a developed country.
She also highlighted Jokowi's statement that he would postpone transferring office to IKN due to incomplete infrastructure construction. Esther said investors may be reluctant to invest in Nusantara if the public facilities construction is unfinished.
Esther urged the government to be careful in managing the State Budget amidst the current decline in revenues. In addition, there is a debt maturity of Rp800 trillion during the government transition period from 2025 to 2027. The budget should be allocated to programs and projects that support economic growth.
Previously, the Minister of Finance Sri Mulyani Indrawati explained that the government has allotted over Rp72.5 trillion for IKN development. She hoped the new capital city would be ready to host the commemorative ceremony for Indonesia’s Independence Day in upcoming August 17.
ILONA ESTHERINA
Editor’s Choice: Minister: Prabowo's Budget for Nusantara Capital City, Free Meals Program is Safe for the Next 5 Years
Click here to get the latest news updates from Tempo on Google News
Jokowi's Move to IKN Delayed Due to Incomplete Infrastructure
2 hari lalu

President Joko Widodo or Jokowi announced the postponement of his office relocation to the new capital of Nusantara or IKN.
Indonesia's President-Elect Prabowo Subianto Vows to Protect Public Funds
2 hari lalu

President-elect Prabowo Subianto pledged to safeguard public funds and ensure that they benefit the nation and society.
Minister: Prabowo's Budget for Nusantara Capital City, Free Meals Program is Safe for the Next 5 Years
3 hari lalu

Minister Luhut says the budget for the Nusantara Capital City (IKN) project and Prabowo's free nutritious meals program is safe for the next 5 years.
Clean Water Distribution in New Capital to Start July 15
5 hari lalu

The commissioning phase for clean water in the Nusantara Capital City or IKN is slated for July 10, 2024.
Jokowi Asks Surplus Food to be Redistributed in New Capital
5 hari lalu

Jokowi asked regions across Indonesia to send food surplus to Nusantara Capital City (IKN) in North Penajam Paser Regency, East Kalimantan.
Indonesian Govt Provides 40,021 Positions for Civil Servant Candidates in New Capital City
5 hari lalu

The Indonesian government has established a special formation for civil servant candidates (CPNS) to be posted in the new capital, Nusantara.
Prabowo's Son Didit Hediprasetyo Designs Team Indonesia's Jerseys for Paris Olympics
6 hari lalu

The National Olympic Committee (NOC) unveiled the official uniforms for Team Indonesia at the upcoming Paris Olympics created by Didit Hediprasetyo.
UN Committee on Palestine Visits Indonesia; Meets Govt Officials
6 hari lalu

The Bureau of UN Committee on Palestine (CEIRPP) is visiting Indonesia from July 3-5, 2024.
Canadian Ambassador Confident Relations Between Indonesia-Canada to Improve Under Prabowo Govt
6 hari lalu

Canadian Ambassador to Indonesia Jess Dutton assured that positive bilateral relations between Indonesia and Canada will continue to develop.
IKN's Nusantara Airport Designated for VIP Use, Not Commercial Flights: Govt
8 hari lalu

The Air Transportation Directorate General has clarified the status of Nusantara Airport in the new capital city (IKN).