Prabowo Reaffirms Commitment to Nusantara Capital Project

President Prabowo Subianto has reaffirmed his commitment to the US$32 billion (Rp541.4 trillion) Nusantara capital city (IKN) project, marking his first overnight stay at the future capital since assuming office in October 2024, according to an official government statement. Uncertainty has surrounded the continuation of the Nusantara project following Prabowo’s inauguration, as the massive relocation plan was a flagship legacy initiative of preceding president Joko “Jokowi” Widodo. Jokowi first unveiled the proposal in 2019 to move Indonesia’s capital approximately 1,200 kilometers away from overcrowded and sinking Jakarta on Java island to a remote area in East Kalimantan, on Kalimantan island. Construction officially began in 2022 after delays caused by the Covid-19 pandemic, though Jokowi was unable to meet his original target of relocating the government by the end of his second term in 2024. Concerns have persisted over whether the new administration could sustain the project alongside its own policy priorities. Analysts have pointed to limited fiscal capacity, noting that Prabowo must fund major social and economic programs while continuing development of the planned green and futuristic capital city envisioned by his predecessor. Despite these concerns, Prabowo’s visit – which ran until January 13, 2026 – was described by his office as a key signal of continuity. “President Prabowo’s presence in Nusantara represents an important momentum in the journey of building the new capital,” the presidential office said in a statement released late on Monday, January 12, 2026. “It reflects the government’s commitment to ensuring development proceeds according to plan and in a sustainable manner.” The Nusantara National Capital Authority, which oversees the project, separately confirmed that office buildings and supporting infrastructure for the executive branch are already prepared. Construction is also underway on facilities for the legislative and judicial branches, with full completion targeted for 2028. In 2024, Prabowo approved a development budget of Rp48.8 trillion (US$3.7 billion) to fund the project through 2029. The allocation represents roughly 60 percent of the amount spent during Widodo’s administration between 2022 and 2024. The continuation of the project comes amid tight fiscal conditions. Indonesia recorded a budget deficit of 2.92 percent of gross domestic product (GDP) in 2025, one of the highest levels in the past two decades and close to the statutory limit of 3 percent. Additional challenges emerged in 2025 when the Constitutional Court reduced the maximum duration of land-use rights for investors in Nusantara, a move that analysts said could dampen investor appetite. Nevertheless, the government maintains that the new capital remains a strategic national priority, with Prabowo’s visit viewed as a strong political signal that the Nusantara project will move forward under his leadership.