New Capital City Transfer Awaits Facility Completion

Prabowo Administration Sets Infrastructure Milestone for Nusantara Move

President Prabowo Subianto‘s administration has outlined a critical prerequisite for the official transfer of Indonesia’s capital from Jakarta to Nusantara in East Kalimantan: the readiness of essential government facilities and infrastructure. The signing of the Presidential Decree will only proceed once these vital elements are in place.

Government Gears Up for Nusantara Transfer

Minister of State Secretary Prasetyo Hadi detailed the government’s timeline, stating that the goal is to have the executive, legislative, and judicial functions fully operational within Nusantara in the next three years. This period will focus on ensuring the new capital is equipped to house and support the core functions of the government.

“Yesterday the calculations were more or less hope that in the next 3 years the facilities needed to run the government, which will accommodate executive functions, legislative functions and judicial functions.”

Prasetyo Hadi also acknowledged various proposals regarding Nusantara, including suggestions for Vice President Gibran Rakabuming to be based in the new capital and for state-owned enterprises to establish offices there. He emphasized that the government remains open to all input, but the current policy direction remains firm: the new capital will only be utilized once its construction is complete.

Progress Report: Nusantara Development Underway

Recent updates from the Authority of the Capital City of Nusantara (IKN) reveal significant progress in several infrastructure projects. As of June 2025, the construction of 47 residential towers for State Civil Apparatus (ASN) and defense personnel has reached an advanced stage, with 97.46% completion.

Infrastructure funded by the Ministry of Public Works (PU) APBN has seen an overall progress of 77.365% as of May 2025, including completed projects. Deputy for Facilities and Infrastructure Danis Hidayat Sumadilaga noted that the construction of vertical residences for the TNI is at 27.32% completion.

Investment in IKN has reached 86.67% through direct investment channeled via the IKN authority, although specific figures were not disclosed. Furthermore, new infrastructure projects are currently undergoing tender processes.

Key Infrastructure Nears Completion

In terms of overall construction phases, IKN Batch 1 work was at 98.55% completion as of April 11, 2025, while Batch 2 stood at 84.04%, and Batch 3 at 48.00%. The Coordinating Ministry Office Complex also shows strong progress, with Kemenko 1 and 3 fully completed. Kemenko 2 construction is at 94%, and Kemenko 4 is at 98%.

The VVIP Airport for IKN has seen its land side component reach 100% completion as of April, with the air side construction at 97.8%. Several key projects, including the Sepaku Semoi Dam, Sepaku Sungai Intake, Integrated Waste Processing Place (TPST), Ministerial Position Houses (RTJM), the State Palace and Ceremony Field, the Garuda Palace, and the offices of the Presidential Secretariat (Setpres) and Ministry of State Secretariat, have already been fully completed.

Indonesia’s commitment to developing Nusantara as a functional capital mirrors global trends in urban relocation for administrative centers. For instance, South Korea’s move of its administrative capital to Sejong City aimed to decentralize government functions and alleviate congestion in Seoul, though challenges in fully relocating all ministries and attracting private sector investment persisted for years.