Purbaya Responds to IKN Authority's Request for Rp 2.7 Trillion in Funds
Minister of Finance Purbaya Yudhi Sadewa has responded to a request for an additional budget of Rp 2.7 trillion submitted by the Nusantara Capital City (IKN) Authority. The additional funds are required to continue the third phase of development.
Purbaya stated that he has not yet received the official documents regarding the funding request from the IKN Authority. He also stressed that he is unaware of the details, as the documents are likely still being processed bureaucratically.
“Where did the information come from? The letter has not reached me. I do not know, maybe it has not arrived,” Purbaya said in Yogyakarta on Thursday, 16 July 2026.
Head of the IKN Authority, Basuki Hadimuljono, had previously disclosed during a working meeting with Commission II of the Indonesian House of Representatives on Thursday, 16 July 2026, that the fresh funds are urgently needed to support multi-year projects through to the 2028 period.
Purbaya said his office would review the budget proposal once he receives official information. “I will study it, but until now it has not reached me,” he said. He merely stated that his ministry will continue to follow President Prabowo Subianto’s directives regarding the IKN budget.
In his explanation during the working meeting with the House of Representatives, Basuki revealed that the fresh funds are critically needed to support multi-year projects through to 2028. The money is planned to be allocated for financing the third phase of physical construction, funding new land acquisitions, and managing various assets that have already been completed in the new capital city.
“To realise the third phase of development and the needs for managing built assets as well as land acquisition, we have proposed to the Minister of Finance an additional budget requirement for 2026 amounting to Rp 2.7 trillion under a multi-year scheme for 2026-2028,” Basuki told the House.
Furthermore, Basuki outlined the financial position of the institution he leads, noting that the IKN Authority holds a regular budget ceiling of Rp 5.47 trillion for the 2026 fiscal year. Of this total ceiling, capital expenditure accounts for the largest portion at Rp 4.3 trillion, followed by goods expenditure allocation of Rp 732.5 billion, and a personnel expenditure budget of Rp 423 billion.
Regarding the budget absorption rate as of 30 June 2026, the IKN Authority recorded that the accrual budget realisation has reached 80.2 percent after accounting for all ongoing procurement contracts for goods and services. However, when reviewed based on actual fund disbursement via the Fund Disbursement Order (SP2D), the realisation is only recorded at Rp 1.23 trillion, or equivalent to 26.2 percent of the total ceiling. Basuki explained that the actual realisation has reached 80.2 percent because all contractual works have been accounted for, whereas the SP2D realisation stands at Rp 1.23 trillion or 26.2 percent.