Prabowo Issues Regulation to Bolster legal Framework forโ Nusantara Capital City Growth
Jakarta, Indonesia – Defense minister Prabowoโ Subianto has issued a governmentโ regulationโข designedโ to provide legalโ certainty for the ongoing development of Nusantara, Indonesia’s planned โฃnew capital city inโข East Kalimantan. The โregulation, signed onโค September 23, 2025, addresses land acquisition,โค spatialโข planning, โคand investment procedures โขwithin the Nusantara nationalโ Capital (IKN) Authority’s jurisdiction.
The move aims to accelerate nusantara’s construction and attract both โฃdomestic and โforeign investment by clarifying ambiguities in existing โlaws andโ streamlining bureaucratic processes. โคthe regulation is especially crucial as Nusantara entersโค its secondโค phase of construction, with important infrastructure projectsโฃ slated for completion inโค the comingโ years. โThis legal framework impacts investors, landowners, and regional stakeholders, potentially unlocking โขbillions in investment andโ reshaping Indonesia’s economicโ landscape.
The regulationโข details procedures for land use rights, building permits, and environmental impact โassessments specifically tailoredโ to theโ unique characteristics of the new capital city. It also establishes a clear mechanismโ for resolving land disputes,aโ criticalโ issue that has previouslyโ hampered development progress. According to the IKNโข Authority, the regulation will ensure transparency and accountability in all land-related โขtransactions.
“This regulation is a vital โคstep โคin realizing theโ vision of Nusantara โasโข a sustainable,โ smart, and globally competitive โcity,”โฃ stated an IKN Authority spokesperson. “It provides โthe necessary legal foundation forโ investorsโฃ to confidently participate โin this transformative project.”
Nusantara, envisioned โขas a modern and environmentally pleasantโ alternative to jakarta, hasโค been a flagship โproject โคof President โฃJoko widodo’s administration. Construction โคbegan in 2022, with the goal of relocating government functions from the congested capital โขtoโ the newโข city by 2024,โข though timelines haveโฃ been adjusted. โฃThe project โขis estimated to cost upwards of $33 billion, funded โthrough a combination of state budget โallocations and private investment.