SEAToday.com, Jakarta - President Prabowo Subianto has affirmed that the development of the new capital, Ibu Kota Nusantara (IKN), in East Kalimantan will continue for the next five years, covering the 2025-2029 period.

Coordinating Minister for Infrastructure and Regional Development, Agus Harimurti Yudhoyono (AHY), conveyed this statement after attending a limited cabinet meeting on IKN at the Presidential Palace Complex in Jakarta on Monday (Feb 3).

"Regarding IKN, the President has confirmed that this project will continue. He has also allocated a budget of approximately IDR 48.8 trillion for the 2025-2029 period," AHY told reporters.

This budget will be used in accordance with the phased plans that have been set from the beginning.

During the meeting, the President invited several officials, including Coordinating Minister AHY, IKN Authority Head (OIKN) Basuki Hadimuljono, Minister of Public Works (PU) Dodi Hanggodo, Deputy Minister of Public Works Diana Kusumastuti, and OIKN Special Staff for Development Planning Imam Santoso Ernawi. The meeting was also attended by Minister of State Secretary Prasetyo Hadi and Cabinet Secretary Teddy Indra Wijaya.

The three-hour discussion focused on the foundational design of the IKN development.

"There are some adjustments that require time, but we hope they can be finalized soon so that construction can begin immediately," said AHY.

At the same venue, the Head of OIKN assured that the budget allocated for OIKN this year remains at the amount approved by the President, which is IDR 6.3 trillion plus an additional IDR 8.1 trillion, bringing the total to IDR 14.4 trillion.

This funding is part of the IDR 48.8 trillion budget allocated for IKN from 2025 to 2029.

Basuki explained that the OIKN budget aligns with the government's cost-saving policies as outlined in Presidential Instruction (Inpres) No. 1 of 2025. Initially, this policy had raised concerns about significant budget cuts for OIKN, potentially reducing its funding by more than half.

"Inpres No. 1 of 2025 was issued before the limited cabinet meeting on IKN on January 21, so we will be sending a formal adjustment request to the Minister of Finance," said Basuki.

He added that Minister of State Secretary Prasetyo Hadi has also confirmed that the OIKN budget will be adjusted to prevent the previously planned reductions under Inpres No. 1 of 2025.

"We presented this matter to the President today, and fortunately, Minister of State Secretary was present to confirm that the adjustment will be made soon," said Basuki Hadimuljono.