Basuki Confirms Rupiah Weakening Has No Impact Yet on Nusantara Capital City Project: Contractors Not Complaining

The Head of the Nusantara Capital City Authority (OIKN), Basuki Hadimuljono, stated that there has been no significant impact from the weakening of the rupiah exchange rate against the US dollar on the IKN development project.

He added that, so far, there have been no complaints from contractors regarding the increase in material prices or operational costs due to such currency fluctuations.

“Not yet. There are no (complaints). There has been no escalation,” Basuki said at the Parliament Complex, Senayan, Jakarta, on Thursday, 11 June 2026.

On the other hand, Basuki explained that price adjustments follow national policy. However, as this situation has not yet occurred, the authority continues to execute contracts according to the original agreements.

Regarding the availability of logistics, Basuki ensured that the supply of materials on the ground remains stable. He emphasised that there have been no reports of supply constraints or surges in building material prices within the IKN area.

“There have been no, no complaints regarding supply and material prices,” he concluded.

Previously, Basuki requested an additional budget of Rp15.5 trillion for 2027. This proposed budget increase is intended to meet the IKN development targets for 2028.

The proposal was presented by Basuki during a Working Meeting with Commission II of the Indonesian House of Representatives (DPR RI) at the Parliament Complex, Senayan, Central Jakarta, on Thursday, 11 June 2026. He explained that the OIKN budget requirement for 2027 is Rp22.2 trillion.

“An indicative ceiling of Rp6.7 trillion has been allocated, so there is still a need for an additional budget of Rp15.5 trillion,” said Basuki.

He explained that the budget increase would be used for the second batch of IKN development for the years 2025, 2026, and 2027 amounting to Rp7.4 trillion, and the third batch of development amounting to Rp8 trillion for multi-year contracts from 2026 to 2028.

“Thus, the objective of Presidential Regulation 79/2025 is to establish the IKN area as the national capital by 2028,” he added.