Tweaking State Budget for the New Capital

The government will create a particular budget allocation to fund the new capital city's infrastructure in the 2022 State Budget (APBN). Head of the National Development Planning Agency (Bappenas) Suharso Monoarfa revealed that he had budgeted up to Rp 12 trillion for basic infrastructure development in the capital's core area in Penajam Paser, East Kalimantan.

The construction of the basic infrastructure will expectedly be completed by 2024. "To build palaces, reservoirs, canals, and others," he said on January 25, 2022. The first phase of the project will require up to Rp 110 trillion, raised from various sources. Meanwhile, Public Works and Housing Minister Basuki Hadimuljono proposed a budget of Rp 46 trillion in 2022 to 2024 for the construction of the president and vice president's offices, legislative buildings, roads, as well as drinking water installations.