Indonesia’s new capital, Ibu Kota Nusantara (IKN), is entering a transformative phase with the launch of its legislative and judicial districts. Backed by a robust Rp273 trillion funding mix, the development marks a strategic leap toward realizing a fully functional, modern, and inclusive center of governance. As construction intensifies, IKN is poised to redefine the nation’s political geography and institutional architecture.
Key Facts & Background
- IKN is located in Sepaku, Penajam Paser Utara, East Kalimantan, and is designed to become Indonesia’s new capital city.
- Infrastructure funding for IKN totals Rp273.82 trillion, sourced from:
- State Budget (APBN): Rp48.8 trillion (2025–2028)
- Public-Private Partnerships (KPBU): Rp158.72 trillion (as of October 2025)
- Private Investment: Rp66.3 trillion (as of October 2025)
- Phase I focused on executive infrastructure, while Phase II (starting November 2025) centers on legislative and judicial ecosystems.
- Legislative complex spans 42 hectares, with a budget of Rp8.5 trillion (2025–2027), including:
- Plenary hall, Democracy Plaza, Serambi Musyawarah, museum, and office buildings.
- Judicial complex covers 15 hectares, budgeted at Rp3.1 trillion, housing:
- Constitutional Court, Judicial Commission, and Supreme Court.
- Construction duration for Phase II is estimated at 25 months, beginning November 2025.
- Presidential Regulation No. 79/2025 officially designates IKN as the center of Indonesian government, accelerating development momentum.
Strategic Insights
The launch of Phase II development in IKN Nusantara marks a critical inflection point in Indonesia’s state-building project. By constructing dedicated legislative and judicial zones, the government is operationalizing the principle of trias politica—the separation of powers—within a purpose-built urban framework. This move not only reinforces institutional integrity but also symbolizes a deliberate shift toward decentralization and administrative modernization.
The Rp273 trillion funding structure reflects a balanced approach to fiscal sustainability and investment mobilization. The blend of APBN, KPBU, and private capital ensures that IKN’s development is not overly reliant on public funds, while still maintaining strategic control over core governance infrastructure. The KPBU model, in particular, signals Indonesia’s commitment to leveraging private sector efficiency and innovation in public service delivery.
Designating IKN as the official seat of government through Presidential Regulation No. 79/2025 provides legal certainty and unlocks regulatory pathways for accelerated implementation. This formal status is expected to catalyze further investment, streamline inter-agency coordination, and enhance the city’s geopolitical significance.
Beyond physical infrastructure, Phase II emphasizes regulatory preparation and human capital development, laying the groundwork for a functional and resilient governance ecosystem. The integration of museums, public plazas, and civic spaces within the legislative complex suggests a vision of participatory democracy and cultural continuity.