Purbaya on Additional IKN Budget: I Will Follow the President's Instructions

Finance Minister Purbaya Yudhi Sadewa has confirmed he will follow the instructions of President Prabowo Subianto concerning the budget for the Nusantara Capital City (IKN) development project in East Kalimantan. Purbaya made this statement in response to a request from IKN Authority Head Basuki Hadimulono for an additional budget of Rp 2.7 trillion to continue the third phase of construction. ‘What is clear is that I will follow the President’s instructions regarding the budget for IKN,’ Purbaya said after a lunch meeting with the Governor of Yogyakarta, Sri Sultan Hamengku Buwono X, at the Kepatihan Complex in Yogyakarta, as quoted on Friday (17/7/2026).

However, Purbaya admitted he was not yet aware of the additional budget request from the authority head. He stated he would check the request letter, which Basuki claimed was submitted on 18 June 2026. ‘The letter has not reached me yet, so I do not know. It may not have arrived. I will study what this is about, it has not reached me,’ he said.

Previously, OIKN Head Basuki Hadimulono submitted a request for an additional Rp 2.7 trillion to the Ministry of Finance to continue the third phase of IKN development. The additional funds would also be used for managing assets that have been built and for land acquisition. ‘To realise the third phase of development and the need for managing built assets and land purchases, we have proposed to the Minister of Finance an additional budget requirement for 2026, on 18 June 2026, which will be used for the batch 3 budget needs, with a multi-year scheme from 2026 to 2028 amounting to Rp 2.7 trillion,’ Basuki said during a working meeting with Commission II of the Indonesian House of Representatives at the parliament complex in Jakarta on Thursday (16/7).

For the 2026 fiscal year, the IKN Authority received a budget ceiling of Rp 5.47 trillion. This allocation consists of Rp 423 billion for personnel expenditure, Rp 732.5 billion for goods expenditure, and Rp 4.3 trillion for capital expenditure. Basuki stated that as of 30 June 2026, accrual-based budget realisation had reached 80.2 per cent, a figure that accounts for all contractually executed procurement. Meanwhile, realisation based on the Fund Disbursement Order issued by the Ministry of Finance reached Rp 1.23 trillion, or approximately 26.2 per cent of the budget ceiling.

Basuki also outlined the development achievements for IKN throughout 2025. From an initial budget allocation of Rp 10.19 trillion, the usable budget after central government blocking policy adjustments amounted to Rp 9.04 trillion. Of this amount, budget realisation reached Rp 8.51 trillion, or 94.13 per cent, with spending dominated by capital expenditure of Rp 7.66 trillion used to complete various projects in the IKN area. According to Basuki, the first phase of development, which includes main roads, has been fully completed. Meanwhile, the second phase of development, under a multi-year scheme from 2025 to 2027, is currently focused on building the ecosystem for legislative and judicial office complexes.