IKN Authority Proposes Additional Rp 15.5 Trillion for 2027 to Meet 2028 Capital City Deadline

The Head of the Nusantara Capital City Authority (OIKN), Basuki Hadimuljono, has proposed an additional budget of Rp 15.5 trillion for the 2027 fiscal year. The extra funding is intended to continue construction of the legislative and judicial zones, along with supporting ecosystems, so that IKN can function as the nation’s capital by 2028. ‘From the total OIKN budget requirement for 2027 of Rp 22.2 trillion, the indicative ceiling has allocated Rp 6.7 trillion, leaving a shortfall of Rp 15.5 trillion,’ Basuki stated during a working meeting with House Commission II at the parliamentary complex in Senayan, Jakarta, on Tuesday. Basuki explained the additional budget would fund the continuation of IKN development in the 2025-2027 period amounting to Rp 7.4 trillion, while the third phase of development for the 2026-2028 period requires Rp 8 trillion. ‘Thus, the objective of Presidential Regulation Number 79 of 2025 to designate the IKN area as the national capital by 2028 can be achieved,’ he clarified. Beyond the 2027 request, Basuki noted his office still requires an additional Rp 3.2 trillion in 2026. This need relates to ongoing construction projects using a multi-year contract scheme. ‘For the continuation of construction work under the 2025-2027 multi-year contract, Rp 3.7 trillion has been allocated for 2026, so we still need an additional Rp 3.2 trillion,’ he said. Basuki reported that construction of the legislative and judicial complex has reached approximately 10 percent physical progress. Projects include buildings for the People’s Consultative Assembly, House of Representatives, Regional Representative Council, Supreme Court, Constitutional Court, and Judicial Commission, as well as access roads and supporting infrastructure. ‘The budget requirement for the legislative and judicial zones and their supporting ecosystem up to 2028, which commenced in 2025 and was approved by the President in a limited meeting in February 2025, is Rp 48.8 trillion, divided into three batches,’ he noted. Basuki confirmed the overall programme allocation would not exceed this Rp 48.8 trillion ceiling from 2025 to 2028. The first phase of development, worth Rp 3.7 trillion, was completed in 2025, covering road construction, multi-utility tunnels, and the arrangement of green open spaces in the Central Government Core Area 1B and 1C. The second phase, valued at Rp 20 trillion, focuses on building the legislative and judicial precincts, while the third phase, worth Rp 17.2 trillion, will construct vertical and landed housing for leaders, members, and staff of the legislative and judicial branches, as well as a diplomatic zone and supporting infrastructure.