President Prabowo Subianto has pledged to complete the development of Indonesia’s new capital city, Nusantara (IKN), by 2028. The government aims to achieve full operational readiness within the next three years, continuing the project initiated under former President Joko Widodo. This commitment comes alongside the allocation of IDR 6.3 trillion (approximately USD 400 million) for IKN in the 2026 Draft State Budget.
Prabowo’s Commitment to IKN Completion
President Prabowo has instructed Nusantara Capital City Authority Head Basuki Hadimuljono to meet the three-year completion target. State Secretary Prasetyo Hadi confirmed that the directive covers all essential facilities.
“All necessary facilities must be completed to meet the requirements for relocation, namely the executive, legislative, and judicial functions. There is no problem with meeting these needs; we will continue,” Prasetyo said at the Parliament Complex in Jakarta.
Prabowo reaffirmed his intention to sustain the project, calling it a matter of national commitment. He stressed that the relocation must happen once the core infrastructure is ready.
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IKN Indonesia’s New Capital City Budget for 2026
The 2026 Draft State Budget allocates IDR 6.26 trillion for the Nusantara Capital City Authority, divided into:
- IDR 5.71 trillion for the Strategic Area Development Program
- IDR 553 billion for the Management Support Program
This allocation is higher than the projected 2025 budget of IDR 4.7 trillion but significantly lower compared to earlier years. From 2022 to 2024, the government allocated IDR 75.8 trillion, with IDR 5.5 trillion realized in 2022, IDR 27 trillion in 2023, and a provisional IDR 43.3 trillion in 2024.
Finance Minister Sri Mulyani Indrawati confirmed the figure after checking with her staff, stating, “IDR 6.3 trillion for IKN. If I’m not mistaken. If I’m wrong, I’ll correct it later.” Her careful phrasing reflects caution, as budget figures can still be adjusted before final approval.
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Government’s National Priorities and IKN’s Role
The government will focus the 2026 budget on eight national priority programs:
- Food security: IDR 164.4 trillion
- Energy security: IDR 402.4 trillion
- Free Nutritious Meals program: IDR 335 trillion
- Education: IDR 757.8 trillion
- Health: IDR 244 trillion
- Village development, cooperatives, and MSMEs: IDR 181.8 trillion
- National defense: IDR 185 trillion
- Investment acceleration: IDR 530 trillion
IKN forms part of the investment acceleration strategy, aiming to promote balanced economic growth and decentralization.
Timeline and Milestones to 2028
The three-year plan sets clear milestones:
- Completion of core infrastructure for executive, legislative, and judicial branches
- Development of supporting public facilities and housing
- Final preparation for the official government relocation
This year, unlike in 2024, there will be no Independence Day celebration at IKN. The focus remains on construction and readiness for the eventual move.
Political Continuity from Jokowi to Prabowo
Law No. 32 of 2022 serves as the legal foundation for IKN’s construction and relocation to East Kalimantan. Prabowo praised the progress under Jokowi, calling it one of the former president’s key achievements.
In his State Address, Prabowo acknowledged Jokowi’s broader legacy, including infrastructure development, improved connectivity between economic hubs, and leadership during the Covid-19 pandemic, which enabled Indonesia to recover faster than many nations.
A Landmark Move for Indonesia
The completion of IKN represents more than a change of location for Indonesia’s capital. It signals a shift towards equitable development, reduced reliance on Java, and increased regional growth. If the government meets its 2028 target, IKN will stand as a testament to sustained national vision across administrations.
Source: ekonomi.bisnis.com, rri.co.id, antaranews.com
Image: Presidential Secretariat
