New Capital Development Won't Use Economic Recovery Fund: Gov't

TheIndonesia.co - The Indonesian government has confirmed that the development of new capital city Nusantara in Kalimantan won’t be using the budget allocated for national economic recovery (PEN) program.

Coordinating Ministry for Economic Affairs Airlangga Hartarto reaffirmed that the allocation of PEN fund has been decided, and it doesn’t include the development of new capital.

“I’d like to remind that PEN fund has been decided at Rp451.64 trillion [US$32.26 billion] and will be allocated for three sectors: health sector at Rp125.97 trillion, social safety net at Rp150.8 trillion, and economic strengthening ar Rp174.87 trillion,” Hartarto said in Jakarta on Monday, January 24, as reported by Antara.

According to him, budget for development of new capital comes from the Ministry of Public Works and Housing (PUPR), and the first phase of development is estimated to require Rp45 trillion.

“So, the budget is from PUPR, and the current PEN budget proportion doesn’t include allocation for new capital,” the Coordinating Ministry asserted.

Earlier this month, during a meeting with House of Representatives’ Commission XI, Minister of Finance Sri Mulyani said the Ministry planned to use the portion of PEN fund allocated for economic strengthening for the development of new capital.

The plan received many criticisms from House members.