IKN Seeks Extra Rp2.7tn: How Did Purbaya Respond?

Purbaya Addresses IKN’s Request for Additional Rp2.7 Trillion in Funding

Minister Has Not Yet Received Official Proposal from Nusantara Capital City Authority

Tempatdonasi.com – Finance Minister Purbaya Yudhi Sadewa has publicly addressed the proposed budget expansion for the Nusantara Capital City (IKN) project. The request, which calls for an additional Rp2.7 trillion in funding, aims to support the construction activities planned for the third phase of development. During his remarks in Yogyakarta on Thursday, July 16, 2026, the minister clarified that he has not formally received the funding proposal from the IKN Authority.

Purbaya emphasized that while he is aware of the request, he lacks specific details regarding its contents. He suggested that the official documentation might still be navigating through various bureaucratic procedures. “Where did that information come from? The letter has not reached me yet. I don’t know of it; maybe it has not arrived,” Purbaya explained to reporters during his visit.

IKN Authority Highlights Critical Need for Fresh Capital

Basuki Hadimuljono, who serves as the head of the IKN Authority, previously discussed the funding requirements during a working session with House of Representatives Commission II. The meeting took place on the same day as Purbaya’s statement, July 16, 2026. Basuki stressed that securing additional capital remains essential for maintaining momentum on the multi-year development initiative, which is scheduled to continue through 2028.

The proposed additional funds would serve multiple purposes within the new capital city. According to Basuki’s presentation to lawmakers, the money would finance physical construction activities for the third phase, acquire new land parcels, and manage various assets that have already been completed. “To realize the development of Batch III and cover the costs of managing completed assets and land acquisition, we have proposed to the Finance Minister an additional budget of Rp2.7 trillion for 2026 under a multi-year scheme 2026-2028,” Basuki stated.

Minister to Review Proposal in Line with Presidential Directives

Purbaya indicated that he intends to carefully examine the budget proposal once it arrives at his office. “I will study what it entails, but it has not reached me yet,” he noted. The minister also mentioned that any eventual budget allocation would be consistent with the guidance provided by President Prabowo Subianto. “Certainly, I will follow the President’s instructions regarding the budget for the IKN,” Purbaya affirmed.

IKN Authority’s Financial Position for 2026

During his presentation to the House Commission, Basuki provided a comprehensive overview of his agency’s financial standing for the current fiscal year. The IKN Authority operates with a regular budget ceiling of Rp5.47 trillion for 2026. Capital expenditure represents the largest portion of this allocation at Rp4.3 trillion. Goods procurement accounts for Rp732.5 billion, while personnel expenses total Rp423 billion.

Regarding budget absorption rates as of June 30, 2026, the IKN Authority reported that its accrual-based budget realization has achieved 80.2 percent. This figure takes into account all active contractual procurements for both goods and services. However, when evaluating actual cash disbursements through Fund Disbursement Orders (SP2D), the real spending stands at Rp1.23 trillion, representing 26.2 percent of the total ceiling. Basuki clarified this discrepancy, explaining that the 80.2 percent realization reflects all contractual work being accounted for, while the cash disbursement through SP2D remains at Rp1.23 trillion, or 26.2 percent.

The minister’s response comes at a crucial juncture for the Nusantara Capital City project. With construction activities intensifying and the timeline extending through 2028, securing adequate funding remains a priority for the IKN Authority. The minister’s willingness to review the proposal in accordance with presidential directives suggests a measured approach to the additional funding request.