Development of Indonesia’s new capital, Nusantara (IKN), continues with total funding reaching IDR 257.56 trillion (roughly USD 14.44 billion) as the government works toward making the region the country’s functional political capital by 2028. 

The capital project’s funding structure reflects a growing reliance on non-state capital to stimulate regional and national economic activity. According to data reported by Katadata, the state budget (APBN) accounts for IDR 48.8 trillion, or roughly 19 percent of the total IDR 257.56 trillion financing gathered to date. The majority of the funding is anchored by non-APBN sources, led by Public-Private Partnerships (KPBU) totaling IDR 134.22 trillion, followed by IDR 74.54 trillion from direct private investments and additional grant allocations. 

As further reported by The Jakarta Post, The Nusantara Capital City Authority (OIKN) is focusing resources on core government infrastructure. The OIKN will direct most of its 2027 budget toward completing legislative and judicial complexes, earmarking IDR 5.3 trillion specifically for work on these government facilities. The budget allocations support a phased development plan designed to meet the political capital mandate set under Presidential Regulation No. 79/2025.  

Head of OIKN Basuki Hadimuljono confirmed that President Prabowo Subianto approved the multi-year APBN allocation for government complexes, which covers legislative structures—including the House of Representatives (DPR), Regional Representatives Council (DPD), and People’s Consultative Assembly (MPR) buildings—as well as judicial headquarters for the Supreme Court, Constitutional Court, and Judicial Commission. 

"We calculated that IDR 48.8 trillion is needed for the legislative and judicial sector," Basuki stated. "This is for constructing buildings, districts, and connectivity, and President Prabowo agreed to and prepared that allocation." 

Basuki further emphasized the administration's determination to meet the 2028 milestone. "There is no doubt in building IKN. All steps taken are now fully directed toward achieving the target of making Nusantara the political capital in 2028, in accordance with the President's direction," he said. 

Despite the positive influx of private capital and state commitments, progress indicators highlight that physical implementation remains in its initial-to-intermediate stages. Construction on the batch-two government complex—comprising legislative and judicial quarters—currently stands at an average completion rate of between 13.6 percent and 15 percent. Furthermore, while 67 private investors have committed to developing commercial facilities, hotels, healthcare centers, and residential towers, overall development reflects a long-term buildout rather than a fully realized urban center. 

Nevertheless, commercial participation continues to expand. Private projects currently underway include mixed-use housing developments funded by international and domestic investors, such as a IDR 1.2 trillion residential complex by China’s Star Bright and a IDR 1.15 trillion project backed by South Korean firms.