Jakarta, Indonesia – Indonesia’s Nusantara Capital Authority (OIKN) is targeting 2028 for the official designation of Nusantara, located in East Kalimantan on Borneo island, as the nation’s capital, according to a statement released today by OIKN Deputy Chairman, Raja Juli Antoni.
Antoni indicated the timeline is contingent upon the completion of critical infrastructure projects within the new capital city. He highlighted the ongoing construction of the Presidential Palace, a key symbolic element of the capital relocation, and emphasized the importance of establishing a robust governmental center.
“So the target is one earlier, that in 2028 in order to be determined this IKN as the capital of the Republic of Indonesia.I think that is. Thank you,” Antoni stated.
The Indonesian government initiated the ambitious project to move the capital from Jakarta in 2019,citing Jakarta’s chronic issues with congestion,pollution,and sinking land due to excessive groundwater extraction.Jakarta is facing a critical situation with land subsidence rates reaching up to 5cm per year in some areas. The relocation aims to alleviate pressure on Jakarta and promote more equitable regional development.
Nusantara is being developed across approximately 56,180 hectares, with the central government area spanning around 6.5 square kilometers (650 hectares or approximately .6 km as previously reported). The project involves a phased construction plan, prioritizing essential government functions and residential areas for civil servants. The Indonesian government has allocated notable funding for the project, with estimates ranging into the billions of dollars, and is also seeking private investment.
Alongside the capital relocation, efforts are underway to mitigate Jakarta’s environmental challenges.A major project involves the construction of hundreds of meters of dikes along the coastline to prevent further land subsidence and protect the city from rising sea levels. This initiative is seen as crucial to averting a potential “doomsday” scenario for Jakarta.