Government Allocates Rp87 Billion for Independence Day Ceremony at New Capital
Ceremony Costs Surge Due to New Capital’s Infrastructure Needs
By Falito Villienuve Tandra, Salma Farah Faiza, and Iman Satyo Adi
August 16, 2024 at 16:30 GMT+7
The Indonesian government has allocated a substantial budget of Rp87 billion for the 79th Independence Day ceremony at the new Nusantara Capital (IKN), significantly surpassing the Rp53 billion typically spent on similar celebrations in Jakarta.
This increase in expenditure is attributed to the unique demands of hosting the event at IKN, which require more extensive procurement of ceremonial equipment and physical facilities. The event's scale at IKN is larger than in previous years, especially considering the need to accommodate a more extensive guest list.
These factors collectively contribute to the heightened costs associated with this year’s ceremony, reflecting the government's commitment to establishing IKN as a prominent national venue. The significant budget allocation underscores the importance placed on the ceremonial proceedings and the logistical challenges inherent in hosting such a large-scale event in a developing capital city.
President Jokowi visited the location of the 79th Indonesian Independence Day Ceremony in the Central Core Area of the IKN Government | Source: ANTARA
In addition to the increased procurement costs, significant funds were allocated to develop specialized access facilities at IKN, an essential but costly requirement given the capital’s nascent infrastructure. Unlike Jakarta, Nusantara lacked the existing roads, transport systems, and venues necessary for a large-scale national event, necessitating swift and expensive construction efforts.
Moreover, the ceremony’s expanded reception, larger in scale than Jakarta’s traditional celebrations, further inflated the budget, as it required additional resources to manage logistics, security, and hospitality for a larger audience. These challenges, compounded by the infrastructural deficiencies at IKN, led to a considerable rise in overall expenses, emphasizing the financial complexities of establishing Nusantara as Indonesia’s new ceremonial hub.
Preparations for Indonesia's Independence Day at the Nusantara Capital (IKN) | Source: Biro Pers, Media, dan Informasi Sekretariat Presiden
Indonesia has disbursed Rp11.2 trillion, which accounts for 26.4 percent of the Rp42.5 trillion budget allocated for the development of Nusantara, the new capital. This spending is expected to accelerate in the coming months, reflecting the government's commitment to progressing the IKN project. The Ministry of Public Works and Housing has secured 108 development contracts totaling Rp84.2 trillion.
However, this substantial sum has yet to be fully utilized. In addition to infrastructure investments, the government has allocated Rp2.2 trillion for non-infrastructure activities including essential planning, coordination, and public awareness campaigns. Altogether, these efforts underscore the comprehensive approach being taken to ensure the successful realization and long-term viability of the IKN project.
Sources:
Bloomberg
IDX Channel
Tempo
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