President Prabowo Subianto has approved a budget allocation of IDR 48.8 trillion (USD 2.98 billion) over the next five years to support the development of Nusantara, Indonesia's new capital city in East Kalimantan. This was confirmed by Coordinating Minister for Infrastructure and Regional Development, Agus Harimurti Yudhoyono, following a meeting at the Presidential Palace on Tuesday. 

 

The proposed budget, submitted by the Nusantara Capital City (IKN) Authority, will fund the construction of legislative and judiciary buildings, supporting facilities, and maintenance. It reflects a decrease from the IDR 75 trillion allocated during the 2022–2024 period under the previous administration. 

 

Minister Yudhoyono emphasized that funding will come from multiple sources, including the state budget and private sector contributions. “Of course, some are sourced from the state budget, while others are sourced from non-state budget sources. We also hope that the private sector can contribute positively,” he said, as quoted by The Jakarta Post. 

 

IKN, estimated to cost IDR 466 trillion by its completion in 2045, is divided into multiple development phases. Approximately 20 percent, or IDR 93 trillion, is expected to come from state coffers, while the majority will rely on private investment. As of September 2024, IDR 58.41 trillion in private sector investment has been secured, according to IKN Authority head Basuki Hadimuljono. 

 

During the first phase of development (2022–2024), key infrastructure, including toll roads, residential towers, sanitation facilities, and government offices such as the Presidential Palace and Garuda Palace, was completed. The second phase, from 2025–2029, aims to establish office ecosystems and supporting infrastructure for the legislative and judiciary sectors. 

 

Public Works Minister Dody Hanggodo confirmed that President Prabowo is expected to begin working in Nusantara by 2028 or 2029. However, Housing Minister Maruarar Sirait highlighted the importance of monitoring project implementation, noting discrepancies between groundbreaking announcements and actual progress. 

 

“We must review these projects,” Sirait said, emphasizing the need for accountability. “Businesses who have begun construction but did not finish or did not build quickly can be asked properly whether they want to continue or not. Later, [the projects] will be given to those who will take them seriously.” 

 

President Prabowo reiterated the importance of maintaining the project’s pace while balancing his administration’s other priorities, such as the free nutritious meals program.