Indonesia’s New Capital Nusantara: A Vision for 2045 and Beyond

East Kalimantan, The Gulf Observer: The Indonesian government has embarked on the ambitious project of developing Nusantara, the nation’s new capital, which is expected to serve as a key driver of the country’s economic growth. Located in East Kalimantan Province, Nusantara is envisioned as a central piece of Indonesia’s development strategy aimed at achieving the “Golden Indonesia” vision by 2045.

Under President Joko “Jokowi” Widodo’s Indonesia-centric development policy, the new capital is intended to promote equitable growth, shifting the nation’s focus from the densely populated island of Java to other regions. President Widodo emphasized that Nusantara represents the nation’s unity and diversity, highlighted by a ceremonial gathering on March 14, 2022, when water and soil from every Indonesian province were combined in a symbolic ritual.

The development of Nusantara is structured around the “Nusantara Smart City Blueprint,” which outlines five phases. The first phase (2022-2024) involves relocating the capital from Jakarta, while subsequent phases will focus on building the city’s infrastructure and establishing it as a “world-class city” by 2045. So far, key projects have been initiated, including a football training center, hospitals, hotels, and malls, marking substantial progress in the development.

On August 17, 2024, Indonesia commemorated its Independence Day in Nusantara for the first time, led by President Widodo and President-elect Prabowo Subianto. Prabowo has committed to continuing the capital’s development, expressing his intent to complete the vision initiated by Jokowi.

Prabowo has also hinted that the 2025 Independence Day ceremony will likely be held in Nusantara, though it remains undecided whether it will also include Merdeka Palace in Jakarta. Prabowo’s administration has identified the development of Nusantara as one of its 17 priority programs, alongside efforts to foster equitable growth beyond Java.

A total of Rp15 trillion (US$969.3 million) has been allocated in the 2025 state budget to support the new capital’s development. However, Deputy Minister of Finance II, Thomas Djiwandono, stressed that the state budget would only cover 20 percent of the overall project, urging the next administration to secure private investments to fund the remaining costs. As of October 2024, investments in IKN have reached Rp58 trillion, with hopes of achieving a target of Rp100 trillion by the end of the year.

The fate of Nusantara’s development now rests with Prabowo’s administration, as President Widodo has deferred signing the presidential decree on capital relocation, leaving this decision to his successor. With strong support from Prabowo and Vice President-elect Gibran Rakabuming Raka, the project is expected to continue progressing, with the public eagerly anticipating the benefits that Nusantara will bring as Indonesia’s new national capital.