The government Is Advised Not to Use the State Budget Funds Too Much to Build a New Capital


The construction of the new capital city in East Kalimantan is continuing. The government also continues to seek funding sources for the development. One source of funding is APBN funds.

However, the government is advised not to use APBN funds excessively in the construction of this new capital.

This was conveyed by the Center of Reform on Economics (CORE) Indonesia. They advised the government not to force itself to allocate too much budget in the State Revenue and Expenditure Budget (APBN) to build the State Capital (IKN).

CORE Indonesia economist Akhmad Akbar Soesamto assesses that actually moving the capital city is not a strange phenomenon. However, if you look at the current situation in Indonesia, Akhmad sees that the plan to move to the capital city is deemed inappropriate.

Moreover, said Akhmad, Law Number 3 of 2022 does not limit that the relocation of the capital city needs to be carried out in one year, but in stages.

For this reason, during Indonesia’s situation which has not yet recovered from the pandemic, he suggested that the government should not force itself to allocate too much budget to the APBN to build IKN.

He also reminded us that the state budget in 2022 is actually an emergency state budget to save people from the Covid-19 pandemic and help the economy.

“IKN development is not something emergency. IKN development is something long-term, which is very long in nature. The philosophy is very different, the emergency vision and the vision to build a new capital city,” he said in a webinar, quoted Wednesday (20/4/2022).

However, because it has been legally formally established, the IKN plan may not be able to be postponed. Nevertheless, Akhmad reiterated that the government should not spend too much of the budget on IKN development, especially this year.

“For me, how much is allocated for the new capital is an option that must be considered so that then we don’t make a mistake in choosing which ones are priorities and which ones are not priorities,” he said.

Previously, Finance Minister Sri Mulyani said that the government had budgeted Rp. 27 trillion to Rp. 30 trillion from the 2023 APBN for IKN development projects.

“We also in the APBN next year have reserved for the development expenditure of the new state capital, which is between Rp. 27 trillion-Rp. 30 trillion,” said Sri Mulyani, Wednesday (20/4/2022).

The budget is planned to be used for the early stages of basic infrastructure development in IKN, such as water, telecommunications networks, and roads. Not only that, but the Ministry of Transportation government building will also be built at an early stage.

It is known, In 2022-2023, the initial stage of construction will begin in some of the central government’s main areas (KIPP). For the first phase, housing for ASN, TNI, Polri, and BIN will be built. Housing is formed in the form of landed houses or apartment units.

Then, to support the construction of this early stage of development, several supporting facilities such as places of worship, markets, and consumption accommodation were also built by the government around the location of the new National Capital City (IKN).

Furthermore, the relocation of residents will begin with the TNI, Polri, and BIN in 2023. Then, the relocation of representatives of the executive, legislative, judicial, and ASN bodies will begin in early 2024.