The Presidential Palace is seen before a ceremony marking Indonesia’s 80th Independence Day in Nusantara on Aug 17. - AFP
JAKARTA: President Prabowo Subianto has moved to give Indonesia’s future capital Nusantara greater certainty by issuing a regulation that formally designates it as the country’s political centre by 2028.
It is his greater signal yet of commitment to the project, even as doubts persist over funding and timelines.
Presidential Regulation No. 79/2025, signed in late June and only made public last week, outlines the government’s priority programmes and work plan for the rest of the year, including the development of the East Kalimantan city “to support the realisation of Nusantara as the political capital by 2028".
Presidential chief of staff M. Qodari explained on Monday (Sept 22) that “political capital” refers to Nusantara’s readiness to host all three branches of government, executive, legislative and judicial, along with their offices and staff.
“It does not mean that Indonesia will then have separate economic or cultural capitals. The point is that all three branches must be ready [to function from Nusantara],” he said.
To meet the 2028 target, the government aims to develop 800 to 850 hectares within Nusantara’s 6,600-ha Central Government District (KIPP) over the next three years.
By then, 20 per cent of government buildings should be complete, half of housing targets achieved and core infrastructure available at 50 per cent capacity. The regulation also calls for relocating up to 4,100 civil servants to Nusantara.
The Nusantara Capital Authority (OIKN), which oversees the project, welcomed the move. Spokesperson Troy Pantouw said the regulation provided a stronger assurance that the megaproject would move forward.
“This regulation provides greater certainty for the public, as well as for businesses and investors that Nusantara’s development will proceed as planned,” Troy told The Jakarta Post on Sunday, adding that construction remained on schedule.
Political parties, including NasDem, which in July urged the President to either fast-track relocation or consider suspending the project, also welcomed the regulation.
“NasDem’s main stance is that the government should make use of the existing facilities in Nusantara so they do not go to waste.
The presidential regulation has addressed this concern,” party secretary-general Hermawi Taslim said on Monday.
He urged the government to gradually relocate agencies and civil servants, starting with senior officials. Eddy Soeparno of the National Mandate Party (PAN) said Prabowo had made “the right decision” to issue the regulation.
“This aligns with the massive development efforts already carried out in recent years, which will be followed by continued construction so that the benefits can finally be felt by 2028,” he said. - The Jakarta Post/ANN
