Minister of Public Works Dody Hanggodo stated that the development of the Nusantara Capital City (IKN) will slow down during President Prabowo Subianto’s administration. The head of state is expected to prioritize efforts to prevent social conflict, especially if wars in Europe and the Middle East escalate and threaten food security. 

 

Nevertheless, Dody emphasized that IKN development will continue under Prabowo's government, though it won’t be a primary focus during the 2024-2029 term. 

 

“Food self-sufficiency hasn’t been achieved yet, which is why some rice procurement still requires imports here and there. That is the main concern of President Prabowo,” Dody said at the DPR Building on Wednesday, October, 30. 


 

Dody cited the disruption of wheat supplies when the Ukraine-Russia conflict broke out, which halted the flow of soybeans into the country and affected local tempeh and tofu producers. 

 

He has not yet calculated the extent of the expected slowdown in IKN development through 2029. However, he believes that construction progress under Prabowo's administration will not match the pace seen under President Joko Widodo due to budget constraints. 

 

“Government funds are very limited. So, IKN construction will be managed and adjusted according to the funds available. That’s the blunt reality,” he added. 

 

IKN Development Budget Allocation 

 

Book II of the 2025 State Budget Financial Note sets the IKN development budget allocation at only IDR 143.1 billion for next year. The government intends to rely on a Public-Private Partnership (PPP) scheme to serve as the backbone of creative financing for IKN’s construction. 

 

The PPP arrangement for the IKN project is designed to ensure sustainable development. The government sees creative financing as essential to mitigating the premium risk for private-sector involvement in IKN infrastructure. 

 

“This way, it is hoped that non-government funding sources can also participate in IKN’s construction,” the document states. 

 

Previously, Nusantara Capital City Authority Head Basuki Hadimuljono targeted the completion of the judicial and legislative areas by 2026. These areas will be situated within the Core Government Center Area (KIPP). 

 

Basuki stated that the completion of these two areas aligns with President Prabowo Subianto’s directives. He assured that IKN development would continue under the new administration. 

 

“So, within two years, the judicial and legislative areas should be completed,” Basuki said at the Ministry of Public Works and Housing Office on Monday, October 21. 

 

Meanwhile, Minister of Forestry Raja Juli Antoni affirmed the government’s commitment to completing IKN development within four years. This commitment was reiterated by Prabowo during a retreat with the Merah Putih Cabinet over the weekend. 

 

The former Deputy Head of the IKN Authority said Prabowo has outlined a plan to complete IKN’s function as the government seat within the next four years. Prabowo requested that the IKN Authority not only finish executive buildings but also the two other trias politica buildings—those for the legislative and judicial branches. 

 

“He hopes that by August 2028, the DPR/MPR Plenary Session can already be held in IKN. Furthermore, he hopes that the inauguration of the President and Vice President in 2029 will take place at IKN,” said Raja Juli. 

Original article here

This article is published in partnership with Katadata