Indonesia’s ambitious plan to relocate its capital to Nusantara has entered an irreversible phase, with construction and policy alignment accelerating under President Prabowo Subianto’s administration. The IKN Authority, led by Basuki Hadimuljono, affirms that every step is now focused on realizing Nusantara as the political center of Indonesia by 2028. With strong investor confidence and strategic national backing, the project is shaping not just a new city—but the future of Indonesian governance and development.
Key Facts & Background
- Project: Ibu Kota Nusantara (IKN) – Indonesia’s future capital
- Target: Designated as Indonesia’s political capital by 2028
- Leadership: Basuki Hadimuljono, Head of IKN Authority
- Presidential support:
- Perpres No. 12/2025 – RPJMN 2025–2029 confirms IKN as a national priority
- Perpres No. 79/2025 – Updates 2025 government work plan to accelerate IKN development
- Funding and investment:
- Rp48.8 trillion allocated from APBN for 2025–2029
- Rp225.02 trillion in total investment commitments
- Rp66.3 trillion from private sector
- Rp158.72 trillion via Public-Private Partnerships (KPBU)
- Infrastructure focus: Roads, multi-utility tunnels, housing
- Human capital development:
- 879+ training programs conducted to boost local skills and livelihoods
- Strategic alignment: IKN supports five national priorities—economic stability, social welfare, education, food security, and public health
Strategic Insights
The development of IKN Nusantara represents a transformative shift in Indonesia’s spatial and political architecture. By relocating the capital from Jakarta to East Kalimantan, the government aims to decentralize governance, reduce urban congestion, and stimulate regional growth. The project’s irreversible momentum—declared by the IKN Authority—signals a high level of political will and institutional commitment.
The Rp225 trillion in investment commitments is a strong indicator of investor confidence, especially given the blend of private capital and KPBU schemes. This financing model not only reduces fiscal pressure on the state budget but also ensures that infrastructure development is commercially viable and efficiently executed. The inclusion of multi-utility tunnels and housing projects reflects a holistic urban planning approach, integrating functionality with livability.
President Prabowo’s alignment of IKN with the RPJMN and annual work plans embeds the project within Indonesia’s broader development narrative. It’s not merely a relocation—it’s a strategic instrument to achieve national goals in economic resilience, human capital, and equitable growth. The emphasis on training and social programs shows that IKN is designed to uplift communities, not just build structures.
From a governance perspective, the clarity of legal boundaries and administrative coordination with surrounding regions enhances regulatory certainty and public service delivery. This is crucial for attracting long-term investment and ensuring that IKN evolves into a well-managed, inclusive capital.
Looking ahead, the success of IKN will depend on sustained policy coherence, transparent execution, and adaptive planning. As the 2028 deadline approaches, the challenge will be to maintain momentum while ensuring that development remains people-centered and environmentally sustainable. If achieved, Nusantara could become a global model for planned capital cities—balancing ambition with accountability.