New Capital Authority Able to Impose Special Tax, Says Finance Ministry

The Ministry of Finance says that the future authority of the new capital city (IKN) will have the authority to charge special fees or taxes once the city is operable. The Ministry’s Director of Harmonization of Budgeting Regulations Didik Kusnaini said the IKN authority will legally inherit flexibility in controlling its budgeting aspect.  “What’s flexible is how the IKN authority can process its funds. Take for example, which has not been enacted yet, but could be rolled out is a special fee or special IKN tax to fund the city’s operations,” said Didik on March 7.However, he asserted that the flexibility will not be on par with SOEs as the financial report, later on, will be consolidated as part of the central government’s.Didik also said that the IKN Authority did not yet have a Budget Management Filling List or DIPA and budget in December 2022. At that time, the IKN Authority told Commission XI the DPR RI did not yet have a DIPA and budget.”From February to October there were only two IKN authorities, the head, and the deputy’s head. While the requirement to have a DIPA, to get a share of the budget, must have treasury officials,”