Jakarta. The budget for Indonesia's 79th Independence Day celebrations in the new capital Nusantara (IKN) on Aug. 17 is set at Rp 87 billion ($5.5 million), up from last year's Rp 53 billion allocated for Jakarta's celebrations.

Isa Rachmatarwata, Director General of Budget at the Ministry of Finance, explained that the increase is due to the procurement of new ceremonial equipment and infrastructure at the new location.

“The budget is higher due to the need for new physical infrastructure and preparations for hosting international guests. The new location's lack of existing facilities also contributes to the increased costs,” Isa said during a press conference in Jakarta on Tuesday.

This year marks the first time Indonesia will celebrate Independence Day in both Nusantara and Jakarta, with approximately 3,000 invitations sent for each event.

Finance Minister Sri Mulyani Indrawati reported that as of July 2024, Rp11.2 trillion has been spent on Nusantara's development, representing 26.4 percent of the Rp 42.5 trillion allocated for 2024.

“So far, Rp11.2 trillion has been disbursed from the Rp 42.5 trillion budget for this year. Additional spending and accelerated disbursement are expected in Q3 and the final quarter,” Sri Mulyani stated.

The Public Works and Public Housing (PUPR) Ministry has about 108 construction contracts valued at Rp84.2 trillion, though not all funds have been utilized yet.

From 2022 to 2024, the total budget for Nusantara stands at Rp 75 trillion, with R p5.5 trillion spent in 2022 and a significant increase to Rp 27 trillion in 2023.

President Jokowi defended the capital relocation in a historic cabinet meeting on Monday, highlighting the uniqueness of building a city from scratch. He emphasized that moving the capital from Jakarta to Nusantara aims to promote inclusive growth across Indonesia, shifting economic activity from the Java island to the archipelago's other regions.