Held from Nov. 19 to 20, the visit emphasized the positive impact of Nusantara development on regional economic growth and ensured the sustainability of funding to ensure the development agenda is on target. With representatives from the East Kalimantan Provincial Government, the Finance ministry, Bank Indonesia as well as regents and mayors from across East Kalimantan in attendance, it also served as a strategic step in securing political and budgetary support for Nusantara’s development.

During the coordination meeting at the Multifunction Hall of the Coordinating Ministry 3 in Nusantara’s Central Government Core Area (KIPP), the IKN Authority presented the progress of the second phase of development, which focuses on the legislative and judicial areas, consisting of three batches of work.

As of Nov. 10, Batch 1 (2025), a single-year contract, has achieved an average construction progress of 76 percent. For Batch 2 (2025–2027), the contracting process with service providers is currently underway, with three physical packages and six construction management packages contracted, while Batch 3 (2026–2028) is currently in the tender preparation stage.

In terms of funding, Nusantara’s development relies on three financing schemes: the state budget (APBN), public-private partnership (PPP) and pure private investment.

As of Nov. 10, there were 17 prospective PPP initiators with an estimated investment of Rp 158.73 trillion (US$ 9.5 billion, covering the residential, road and multi-utility tunnel (MUT) sectors. Meanwhile, 50 private investors and institutions have signed cooperation agreements in various strategic sectors, ranging from education and healthcare to commercial and banking, and residential, with an investment value of approximately Rp 66 trillion.

IKN Authority chairman Basuki Hadimuljono emphasized the central government's commitment through the issuance of Presidential Regulation No. 79/2025 concerning the Update of the 2025 Government Work Plan.

"Presidential Regulation No. 79/2025 increases our confidence that the National Capital will continue. Furthermore, President Prabowo Subianto has approved a budget of Rp 48.8 trillion for the 2025–2029 period.

Banggar DPR deputy chairman and head of the delegation Syarief Abdullah emphasized the agency’s as well as the House of Representatives’ commitment to support Nusantara’s development.

"Our presence in full is concrete evidence of the House's commitment to continue accelerating the development of the Nusantara as the nation's capital," he said.

On the same occasion, the Regional Secretary of East Kalimantan Sri Wahyuni, also stated that the development of Nusantara has directly contributed to regional economic growth.

"In the first two years of l IKN development, economic growth in East Kalimantan reached 7 percent," she said.

With support from various parties, from the House of Representatives, regional governments, ministries and institutions to the private sector, the development of Nusantara increasingly demonstrates that it is not simply relocating the capital, but an effort to achieve equitable development that provides greater space for progress in eastern Indonesia. This strengthening collaboration serves as a crucial foundation to ensure Nusantara emerges as a new center of economic growth, innovation and public services for all Indonesians.

Popular

Why Indonesia’s EV future must be different: Lessons from Norway

Behind Trump defense of MBS, a deeper US shift on human rights

Growth story: Taking a big leap in the fourth quarter