Basuki Responds to Prabowo's Speech Not Mentioning IKN, Reveals This

Jakarta, CNBC Indonesia - President Prabowo Subianto did not specifically mention the development of the Nusantara Capital City (IKN) as part of the National Priority Work Programme when delivering the Government’s Introductory Statement on the Draft Law on the State Budget for the 2027 Fiscal Year at the DPR Building, Senayan, Jakarta, Friday (14/8/2026).

Head of the Nusantara Capital Authority (OIKN) Basuki Hadimuldjono provided an explanation regarding this matter. He stated that IKN development remains part of the government’s priority agenda, particularly in the infrastructure sector.

“I think IKN is part of infrastructure development. It does not need to be mentioned separately. I think that is his policy,” Basuki told reporters at a tree-planting area in Penajam Paser Utara, East Kalimantan, as quoted by detikcom, Saturday (15/8/2026).

According to Basuki, IKN development is included in the regional and village development cluster. Therefore, he assessed that there was no obligation for Prabowo to mention IKN separately in the state address.

“It is in the infrastructure cluster and what is it, regional and village development. I think in that cluster there is IKN development,” he explained.

Basuki also confirmed that budget support to continue IKN development has begun to be provided in stages. Previously, Prabowo had approved an IKN development fund allocation of Rp48.8 trillion.

“Already, it has started since last year. Last year there was Rp10 trillion, in 2025 there was Rp10 trillion and a fraction. In 2026 there is currently Rp6 trillion, and later, God willing, there will be an additional Rp27 trillion,” he concluded.

For information, Prabowo approved a budget for the continuation of IKN development for the 2025-2029 period amounting to Rp48.8 trillion on 21 January 2025.

In the second phase of IKN development, the government is targeting Nusantara to function as the political capital by 2028. Basuki previously said he had been mandated to complete infrastructure development supporting the judicial and legislative ecosystem, including office and housing needs.

To realise these development targets throughout 2025-2029, OIKN requires budget support from the state budget amounting to Rp48.8 trillion.

“The Rp48.8 trillion, the President has agreed to allocate to OIKN to complete the aforementioned,” Basuki said in his written statement, Tuesday (21/1/2026).

Meanwhile, the government has established a number of National Priority Work Programmes, namely:

Food sovereignty

Energy and water self-sufficiency

Education

Health

Downstreaming and industrialisation

Infrastructure, housing, and disaster resilience

Strengthening the people’s economy and village development

Poverty reduction