Ilona Estherina, Jakarta – Finance Minister Sri Mulyani Indrawati has indicated that construction on the Nusantara capital city (IKN) will continue under President Prabowo Subianto, who has reportedly set a budget for the project.
"For IKN, it's Rp6.3 trillion [in 2026], if I'm not mistaken. I will check it again later," Sri Mulyani said during a press conference on the 2026 State Budget Plan and financial notes at the central office of the Directorate General of Taxes in Jakarta on Friday, August 15, 2025.
The IKN budget was not discussed in detail during the conference, nor was it mentioned in President Prabowo Subianto's speech on the 2026 State Budget draft at the DPR.
In 2025, the government allocated Rp13 trillion for the project, which was initiated during President Joko Widodo or Jokowi's administration. This budget included Rp5.4 trillion for road paving and construction along the KIPP area roads, with an additional Rp8.1 trillion allocated for judicial and legislative areas. The 2025 budget was significantly lower than the Rp43.4 trillion allocated in 2024.
Officials raise concerns over IKN's feasibility
Prior to this, the Head of the IKN Authority, Basuki Hadimuljono, stated that the maintenance cost for the Nusantara capital city would amount to Rp200-300 billion. "Therefore, President Prabowo wants to expedite its development," Basuki said at the parliament building complex in Jakarta on Tuesday, July 8, 2025.
However, a Tempo magazine report on August 10, 2025, mentioned that the construction of IKN was facing significant challenges, with several officials revealing that the actual maintenance costs would be larger than Basuki had stated.
Meanwhile, Bambang Haryo Soekartono, an expert council member of the Gerindra Party, argued that the IKN's development needs to consider the comprehensive readiness of its transport infrastructure to ensure effective mobility to the new government center.
"The government needs to promptly evaluate and decide on the best course of action so that the people are not sacrificed for the interests of IKN's development," he stated on Sunday, August 10, 2025.
According to Bambang, a member of Commission VII of the House of Representatives (DPR), transportation access is crucial for ensuring effective mobility without burdening the population. He calculated that if 2 million people were to travel to IKN, with round-trip plane tickets costing Rp1.5 million, the total transportation expenses would reach Rp6 trillion.
This amount does not include accommodation costs, which he estimated at Rp2 trillion per day, bringing the total to Rp8 trillion per day or Rp2.920 trillion per year.
Bambang also argued that if IKN becomes the official government center, most stakeholders, including large companies, State-Owned Enterprises (SOEs), and the DPR, would heavily rely on air and sea transport.
He compared this to Jakarta, which, as the current government center, has various modes of transportation, from walking and cycling to motorbikes, cars, and trains.
The ITB alumnus also highlighted the limitation of air transport capacity. Indonesia has approximately 450 aircraft with a capacity of 200 passengers, carrying a total of 360,000 passengers per day, far below the estimated need of 2 million passengers. The Sultan Aji Balikpapan Airport can only accommodate 30 aircraft or around 45,000 passengers per day, while the IKN airport can only accommodate around 600 passengers per day.
"Where will the passengers be accommodated, and what mode of transportation will they use? This needs to be thoroughly studied," he said.
Final approval awaited
The development of IKN was pursued vigorously during the second term of former President Joko Widodo or Jokowi. He even held the August 17, 2025, ceremony at the IKN Presidential Palace. However, the relocation of the capital from Jakarta to IKN requires a Presidential Decree.
State Secretary Minister Prasetyo Hadi explained that President Prabowo Subianto has not yet signed the decree because he is waiting for the readiness of IKN's facilities and infrastructure.
"Facilities and infrastructure, these are the requirements that we feel must be in place before deciding or the president signs the decree for the capital city relocation," he said at the Presidential Palace complex in Central Jakarta on Friday, July 25, 2025.
Prasetyo stated that the government estimates that the facilities and infrastructure in IKN can be completed within three years, and the IKN Authority is currently developing infrastructure to support the legislative, executive, and judicial functions.
– Nandito Putra, Riri Rahayu, and Daniel Ahmad contributed to the report.
Source: https://en.tempo.co/read/2040117/sri-mulyani-reveals-2026-nusantara-capital-budget-drops-to-rp6-3t