Tax & Spend

Indonesia’s New Capital May Be Spared From Prabowo’s Budget Cuts

  • Government set to spare $30-billion project from spending cuts
  • New capital was championed by president’s predecessor

The presidential palace in the future capital Nusantara.

Photographer: Bay Ismoyo/AFP/Getty Images
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Indonesia’s future capital city will likely emerge unscathed with its budget intact even as a host of agencies see deep spending cuts to ensure more funding for President Prabowo Subianto’s signature social programs.

The government will maintain the budget of 48.8 trillion rupiah ($3 billion) over the next five years to build the city’s next phase of infrastructure, including legislative and judicial office complexes, Nusantara Capital Authority chief Basuki Hadimuljono told a parliamentary hearing on Wednesday.