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Financing of IKN and Nutritious Meal Programs Ensured to be Safe

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By: Syahnaz Savitri)*


Indonesia is currently focusing on two major programs and policies that are very important, namely the construction of a new National Capital City (IKN) in East Kalimantan and a nutritious food program initiated by Defense Minister Prabowo Subianto and the incoming President. Several worrying views emerged regarding the potential for budget conflicts and their implementation. However, various facts currently show that the two programs are guaranteed to be safe and will not interfere with each other.

The development of IKN in East Kalimantan is one of the largest projects in Indonesian history. President Joko Widodo announced this plan with the aim of reducing the burden on Jakarta, which is currently facing various problems, including traffic jams, pollution and flooding. This new IKN is expected to become a modern and environmentally friendly government center.

On the other hand, the nutritious eating program initiated by the Minister of Defense, Prabowo Subianto, has also attracted public attention. This program aims to improve nutrition and public health, especially for children and teenagers in Indonesia. Prabowo emphasized the importance of a healthy and strong young generation as an important asset for the nation’s future.

This program focuses on providing nutritious food consisting of protein, vitamins and minerals necessary for children’s growth and development. Prabowo is also working with the Ministry of Health and the Ministry of Education to ensure that this program is effective and on target.

He ensured that the budget for this program would not interfere with budget allocations for other projects, including IKN development. In its implementation, this program involves the distribution of nutritious food to schools and communities throughout Indonesia.

Previously, the Minister of Finance, Sri Mulyani Indrawati, allocated a budget for the Free Nutritious Meals (MBG) program of IDR 71 trillion in the 2025 Draft State Revenue and Expenditure Budget (RAPBN). Implementation of the MBG Program will be carried out in stages, of which the allocation of IDR 71 trillion is the budget for the year First.

The MBG Porgram budget has been included in the 2025 RAPBN posture agreed upon in the discussion of the Macroeconomic Framework and Fiscal Policy Principles (KEM-PPKF). The Prabowo-Gibran team will prepare the details of the MBG Program which will be explained separately. The preparation of the 2025 RAPBN itself was carried out following the APBN cycle regulated in the State Finance Law and was discussed with the DPR to obtain approval.

Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan said the costs for the IKN project and Prabowo’s free nutritious meals were safe even for the next five years.

Based on an economic study from the Coordinating Ministry for Maritime Affairs and Fisheries, the government can still allocate up to IDR 612 trillion per year assuming the budget deficit reaches 2.5 percent. It is believed that the budget can be allocated for the nutritious lunch program, IKN development including completing the construction of the Sumatra toll road.

To support the budget, a number of efforts need to be made, including ensuring improvements in government technology, tax payments that need to be intensified and ensuring that no one is in arrears on taxes. He is optimistic that both the IKN development project and the nutritious lunch program can be fully realized even though the decision is in the hands of President-elect Prabowo Subianto.

Apart from that, the Head of the National Development Planning Agency (Bappenas), Suharso Monoarfa, is confident that the development of the National Capital City (IKN) of the archipelago will continue according to target during the Prabowo Subianto-Gibran Rakabuming Raka administration.

Even though the government has programs such as free nutritious meals, which also use the state budget or APBN, he guarantees that IKN development will not be hampered. It is believed that the IKN development project will not always use state treasury and can be assisted with public participation or through private investors. This is because the city is not only filled with state civil servants (ASN), TNI and Polri.

As long as development is disciplined according to the planning or master plan, IKN can still run according to target. IKN has been designed through a master plan made by the government, he understands that there will definitely be deviations according to field conditions. But as long as it is tolerated, according to Suharso there is no problem.

Currently, IKN investment is still dominated by private investors. This was confirmed by the Minister of Public Works and Public Housing (PUPR) Basuki Hadimuljono who also serves as Acting Head of the IKN Authority. Basuki estimates that, like domestic investors, foreign investors will be willing to invest in IKN if the internal rate of return (IRR) is above 12 percent.

The government has regulated the distribution of the budget very clearly. The budget for IKN development has been detailed and is mostly financed through sources outside the APBN. Meanwhile, the budget for the nutritious food program has been specifically allocated in the APBN and does not take up a portion of the IKN development budget.

The government emphasizes that these two programs are national priorities that complement each other. IKN development is a long-term investment that is expected to drive the economy and increase equitable development. On the other hand, a nutritious eating program is an investment in healthy and quality human resources, which will also support long-term economic growth.

These two programs have received widespread support both domestically and internationally. The development of IKN is supported by various investors and friendly countries who see the great potential of this new capital city. The nutritious eating program also receives support from various health and community organizations who care about the importance of nutrition for the younger generation.

The construction of the new IKN in East Kalimantan and the nutritious food program initiated by Prabowo Subianto are two major programs that are guaranteed to be safe and do not interfere with each other. With clear budget distribution, planned priorities, and broad support, it is hoped that these two programs can run smoothly and provide great benefits for Indonesia’s future. The government is committed to ensuring that infrastructure development and improving community nutrition go hand in hand and support each other for the nation’s progress.

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)* University Student 17 August 1945 Samarinda

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