Prabowo Issues Regulation to Bolster legal Framework for Nusantara Capital City Growth
Jakarta, Indonesia – Defense minister Prabowo Subianto has issued a government regulation designed to provide legal certainty for the ongoing development of Nusantara, Indonesia’s planned new capital city in East Kalimantan. The regulation, signed on September 23, 2025, addresses land acquisition, spatial planning, and investment procedures within the Nusantara national Capital (IKN) Authority’s jurisdiction.
The move aims to accelerate nusantara’s construction and attract both domestic and foreign investment by clarifying ambiguities in existing laws and streamlining bureaucratic processes. the regulation is especially crucial as Nusantara enters its second phase of construction, with important infrastructure projects slated for completion in the coming years. This legal framework impacts investors, landowners, and regional stakeholders, potentially unlocking billions in investment and reshaping Indonesia’s economic landscape.
The regulation details procedures for land use rights, building permits, and environmental impact assessments specifically tailored to the unique characteristics of the new capital city. It also establishes a clear mechanism for resolving land disputes,a critical issue that has previously hampered development progress. According to the IKN Authority, the regulation will ensure transparency and accountability in all land-related transactions.
“This regulation is a vital step in realizing the vision of Nusantara as a sustainable, smart, and globally competitive city,” stated an IKN Authority spokesperson. “It provides the necessary legal foundation for investors to confidently participate in this transformative project.”
Nusantara, envisioned as a modern and environmentally pleasant alternative to jakarta, has been a flagship project of President Joko widodo’s administration. Construction began in 2022, with the goal of relocating government functions from the congested capital to the new city by 2024, though timelines have been adjusted. The project is estimated to cost upwards of $33 billion, funded through a combination of state budget allocations and private investment.
