TEMPO.CO, Jakarta - Indonesia's Finance Ministry has reported that Rp43.4 trillion was utilized for the development of the Nusantara Capital City (IKN) throughout 2024. This figure represents 97.3 percent of the total budget allocated from the State Budget for the year, which amounted to Rp44.5 trillion.

Deputy Minister of Finance Suahasil Nazara said that the construction of the new government center has had a significant impact on the Province of East Kalimantan and the Kalimantan region as a whole. 

“Because this is a fairly large allocation for regional spending,” he explained at the State Budget performance conference held at the Finance Ministry’s office in Central Jakarta on Monday, January 6, 2024.

The budget allocated from the 2024 State Budget was used for the construction of buildings within the state palace area, the coordinating ministry area, other ministries, and the IKN authority building. Additionally, the budget also funded the construction of civil servant (ASN) housing, defense and security facilities (Hankam), ministerial landed houses, and the IKN hospital.

Further development efforts included the arrangement and improvement of the Sepaku Semoi dam area, the KIPP Reservoir, and the IKN flood control infrastructure. The total budget disbursed for IKN development from 2022 to 2024 has now reached Rp75.8 trillion.

Suahasil noted that this development has contributed to economic growth in the IKN area. He explained that the Kalimantan region experienced the highest economic growth in 2023. In 2022, Kalimantan's economic growth was approximately 4.5 percent; this increased to 6.2 percent in 2023 and continued through the third quarter of 2024.

Despite price pressures on coal, crude palm oil (CPO), and other commodities originating from Kalimantan, the region's economic growth has been sustained.

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