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Infrastructure development at IKN costs Rp68tn, PUPR Ministry admits concerns over BPK audit

Tempo - March 22, 2024

Riri Rahayu, Jakarta – Cakra Nagara, director of building construction, and directorate general of creative works at the Ministry of Public Works and Public Housing (PUPR), admitted that he was worried about the audit by the Supreme Audit Agency (BPK) over the construction work at the Nusantara Capital City or IKN, for which the ministry received a budget allocation of Rp68 trillion between 2020 and 2024.

Speaking at an event to socialize and discuss the 'Readiness to Move the National Capital' at the Ombudsman office on Wednesday, March 20, Cakra said that the development of IKN was extraordinary in terms of planning, budgeting, and implementation.

"From all points of view, especially from the BPK, we will eventually be the one audited to see if this will be a total loss (of state finances) or not. And this is something that all ministries/institutions are most afraid of."

The Rp68 trillion budget, Cakra said, will be disbursed in two stages. For the first stage, the disbursement is almost Rp25 trillion for the construction period from 2020 to March 2023. The first stage of construction has reached a progress of almost 77 percent.

For the second stage, the budget is Rp44 trillion with physical progress of about 25 percent. "On average, the total is 44 percent (development progress) from 2020 to 2024," Cakra said.

Cakra said the PUPR Ministry's projects include public facilities such as roads, bridges, toll roads, drinking water facilities, waste management, and dams, among others. There are also government facilities and offices, including palaces, ceremonial grounds, and ministerial buildings.

For now, he said, the ministry is aiming to complete work on the drinking water facilities as soon as possible, and that the tests should be carried out in July next year. This is because President Joko Widodo has stated that he will be residing at IKN together with PUPR Minister Basuki Hadimuljono.

Source: https://en.tempo.co/read/1848475/infrastructure-development-at-ikn-costs-rp68tn-pupr-ministry-admits-concerns-over-bpk-audi