Indonesia's Nusantara Capital: What Is Known So Far

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TEMPO.CO, Jakarta - The Constitutional Court, in ruling No. 71/PUU-XXIV/2026, stated that Jakarta remains the capital of Indonesia, despite the establishment of Nusantara in East Kalimantan as the planned new national capital.

The Court ruled that although Nusantara has been legally designated as the future capital, the formal relocation of the capital remains incomplete and still depends on a presidential decision.

Constitutional Justice Adies Kadir said that until the president issues a final decision on moving the capital from Jakarta to Nusantara, Jakarta will continue to serve as the national capital.

The ruling comes amid ongoing uncertainty over the future of the Nusantara Capital City (IKN) project, which has slowed under President Prabowo Subianto, who has not placed the project among his top priorities compared to his predecessor, Joko Widodo.

Below is a snapshot of recent developments surrounding the IKN project.

Vice President Gibran Expected to Work from Nusantara

Vice President Gibran Rakabuming Raka is expected to begin working from Nusantara soon. Head of the Nusantara Capital Authority (OIKN), Basuki Hadimuljono, said preparations are underway for the Vice President’s relocation, including the assignment of around 50 staff members to support the transition.

Speaking during a meeting with House of Representatives Commission II on March 30, 2026, Basuki said Gibran’s office in Jakarta is expected to be vacated this year.

“I think this is already on track because we have assigned 50 staff there for preparation,” Basuki said.

He added that the Vice President’s office building in Nusantara has been completed and is ready for use.

Commission II member Deddy Sitorus suggested that the Vice President, along with several ministers, begin working from Nusantara to prevent newly completed facilities from deteriorating due to lack of use.

Gibran, the eldest son of former president Joko Widodo, also invited Deddy to visit and work from Nusantara. In a statement issued by the Vice President’s Secretariat on April 9, 2026, Gibran said that, as Nusantara is targeted to become the political capital by 2028, all branches of government—executive, legislative, and judicial—must be prepared to operate there.

Prabowo’s Plan to Make Nusantara a Political Capital by 2028

President Prabowo Subianto’s intention to designate Nusantara as Indonesia’s political capital by 2028 is reflected in Presidential Regulation No. 79/2025 on the 2025 Government Work Plan Update, signed on June 30, 2025.

The regulation outlines a gradual relocation of government functions to Nusantara, including the development of the core government area (KIPP) and the transfer of civil servants (ASN), with the long-term goal of establishing Nusantara as the political capital.

State Secretary Minister Prasetyo Hadi said the designation is aimed at ensuring that by 2028, core government institutions are operational in Nusantara.

“This means that within three years, facilities for the executive, legislative, and judicial branches should be completed,” Prasetyo said at the parliamentary complex on September 23, 2025.

He added that the Prabowo administration remains committed to continuing the development of Nusantara, a project initiated under Joko Widodo, to eventually relocate Indonesia’s capital from Jakarta.

Prasetyo also clarified that the term “political capital” does not imply a separation between political and economic centers.

“It does not mean a division into political or economic capitals,” he said.

Rp6 Trillion Allocated for IKN Development in 2026

The Nusantara Capital Authority confirmed that Rp6 trillion (around US$370 million) from the 2026 state budget will be allocated for continued development of the new capital.

OIKN head Basuki Hadimuljono said the budget must be managed with strong accountability and transparency given its strategic importance. He noted that several key financial officials were appointed to manage project implementation at the end of 2025.

The appointed officials include six unit heads, 24 commitment-making officers, five payment authorization officials, and three treasurers.

Uncertainty Over the Future of Nusantara Project

Amid slowing progress, several alternative proposals have emerged regarding the future role of Nusantara. Some political figures have suggested placing a moratorium on the project due to fiscal constraints and shifting national priorities.

On July 18, 2025, NasDem Party deputy chair Saan Mustopa urged the government to reconsider the pace of development, citing budget limitations.

Other proposals include designating Nusantara as a provincial capital or even using it as a presidential transit palace. The debate reflects concerns over the scale of funding required, with the total estimated cost of the project reaching Rp440 trillion. By the end of 2024, only Rp71.8 trillion had been disbursed.

Origins of the Nusantara Capital Plan

The plan to relocate Indonesia’s capital was first announced by then-president Joko Widodo on August 26, 2019, at the State Palace.

East Kalimantan was selected as the new capital region, covering parts of North Penajam Paser Regency and Kutai Kartanegara Regency. Following the announcement, the government began land acquisition and early-stage development for the project.