Indonesia confirms Nusantara as political capital, targets full government relocation by 2028

The Indonesian government has officially reaffirmed that Nusantara (IKN), the country’s planned new capital in East Kalimantan, will serve not only as an administrative hub but as the full-fledged political center of the nation. The move marks a definitive step in the country’s historic capital relocation project, with completion of core government infrastructure targeted for 2028.

Head of the Presidential Staff Office (KSP), M. Qodari, emphasized that a functional capital must accommodate all three branches of government—executive, legislative, and judiciary—to operate effectively, Jakarta Globe reports.

“If there is only a presidential palace without legislative and judicial institutions, how can the government function efficiently? All three must be present in IKN,” Qodari stated, underscoring the holistic nature of the relocation plan.

This vision aligns with the directives of President Prabowo Subianto, who has instructed that the facilities for all branches of government be completed within the next three years. The government's goal is to ensure that Nusantara meets the structural and symbolic requirements of a modern national capital by 2028.

The formal designation of Nusantara as Indonesia’s political capital was cemented through Presidential Regulation (Perpres) No. 79 of 2025, issued on June 30. The regulation amends the national government’s 2025 work plan (Rencana Kerja Pemerintah, RKP), placing IKN development as a top national priority.

The 2025 RKP allocates a total of Rp36.25 trillion (approximately $2.2 billion) for the development of IKN under the oversight of the IKN Authority. Of this amount:

Rp18.12 trillion is dedicated to building a sustainable, smart city and accelerating Kalimantan’s regional GDP growth to an estimated 5.8 percent.

The remaining Rp17.82 trillion will fund the planning, construction, and relocation processes, including the development of the Core Government Area (KIPP), which will span approximately 800 to 850 hectares.

These funds will support the integration of national government infrastructure, including ministries, parliament buildings, and the Supreme Court, as well as supporting urban systems to accommodate civil servants and citizens relocating from Jakarta.

The reaffirmation of Nusantara’s status has been welcomed by key lawmakers, including Ahmad Doli Kurnia, a senior figure from the Golkar Party, which has long backed the capital relocation initiative.

“This presidential regulation is a clear signal that the Prabowo administration will continue with plans to establish IKN as the capital,”

Doli stated, adding that Golkar had been involved in drafting the capital relocation law and remained a steadfast supporter of the project.

Doli also addressed growing public concerns regarding the apparent decline in funding allocations and uncertainty about the project’s continuity. He noted that the new regulation serves as a reassurance that the Nusantara vision remains central to the national agenda.

By Vafa Guliyeva