Nusantara, Indonesia – the construction of IndonesiaS new capital city, Nusantara (IKN), is undergoing a important transition as the IKN Authority assumes full duty for project progress. Previously, the Ministry of Public Works adn Public Housing (PUPR) played a leading role, but the IKN Authority, established recently, is now fully operational and taking the reins.
the IKN Authority, currently led by Basuki Hadimuljono, who previously served as Minister of PUPR during the Jokowi governance, has been bolstered by the assignment of civil servants (ASN) to work directly in IKN. This shift marks a key step in the project’s evolution, moving from initial planning and groundwork led by the Ministry to implementation and completion under the dedicated IKN Authority.
President Prabowo Subianto has held several meetings with basuki Hadimuljono to discuss infrastructure development in Nusantara. During a meeting at the Jakarta Presidential palace on January 21, 2025, Prabowo authorized Basuki to continue IKN construction with a capital budget of Rp48.8 trillion (approximately $3.1 billion USD based on current exchange rates) over the next five years.
the Ministry of Public Works’ involvement is now limited to completing a small number of remaining projects. Diana Kusumastuti, a spokesperson for the Ministry, stated that a budget of Rp14 trillion (approximately $880 million USD) has been allocated to finalize these outstanding tasks. She specifically mentioned the completion of a toll road as one of the remaining projects under the ministry’s purview.
Public Works Minister Dody Hanggodo confirmed the transition, emphasizing that while some remnant work remains, the bulk of the construction will now be managed by the IKN Authority.”If we only have the remnants of work that have not been completed, but there isn’t much. The budget is enough,” Dody stated at Sentra Handayani, East Jakarta, on June 29th.
the establishment of the IKN Authority and the transfer of construction responsibilities represent a critical phase in the development of nusantara, intended to streamline the project and ensure its prosperous completion as Indonesia’s future administrative center. The new capital is envisioned as a lasting, smart city, designed to alleviate pressure on Jakarta and promote more equitable regional development.
(DEF / AGT)