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Indonesia adds 494.8 mln USD for new capital construction amid budget cut

0 Comment(s)Print E-mail Xinhua, February 13, 2025
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JAKARTA, Feb. 13 (Xinhua) -- The Indonesian government has assured that the construction of the country's new capital, Nusantara, on Borneo Island will proceed as planned despite concerns over massive budget cuts.

Head of the Nusantara Capital City Authority Basuki Hadimuljono said on Wednesday that the government has added 8.1 trillion rupiahs (around 494.8 million U.S. dollars) to the budget.

"President Prabowo Subianto asked us and other ministers to prepare an additional budget document amounting to 8.1 trillion rupiahs, as part of the total budget, which is 48.8 trillion rupiahs (around 2.98 billion dollars)," Hadimuljono said after a hearing with the Indonesian parliament, as quoted by local media.

Indonesia's massive budget cut of up to 306.7 trillion rupiahs (around 18.76 billion dollars) in 2025 state spending has recently made headlines.

The budget allocation for infrastructure was also reduced by 81.38 trillion rupiahs (around 4.98 billion dollars), down from the initially planned 110.95 trillion rupiahs (around 6.79 billion dollars).

The budget cuts reportedly aimed to increase funding for the country's nationwide free nutritious meals program. Enditem

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