Jakarta. The Indonesian government has reaffirmed that its planned new capital, Nusantara (IKN), will serve as the nation’s political capital rather than merely a standalone administrative hub.

Head of the Presidential Staff Office (KSP) M. Qodari said that an effective capital must house all three branches of government: executive, legislative, and judiciary. “If there is only a presidential palace without legislative and judicial institutions, how can the government function efficiently? All three must be present in IKN,” he said on Monday.

The government aims to complete facilities for all three branches by 2028, in line with President Prabowo Subianto’s directives. “This will ensure that the capital truly meets the standards of a national seat of government,” Qodari added.

IKN, located in East Kalimantan, was officially designated as Indonesia’s political capital under Presidential Regulation (Perpres) No. 79 of 2025, published on June 30. The regulation updates the government’s 2025 work plan (RKP) and outlines the construction, planning, and relocation efforts necessary to realize IKN as the country’s political center by 2028.

The updated RKP prioritizes IKN development with a total budget of Rp36.25 trillion ($2.2 billion) under the IKN Authority. Of this, Rp18.12 trillion is earmarked for building a sustainable city and boosting Kalimantan’s GDP growth to 5.8 percent. Another Rp17.82 trillion will fund planning, construction, and relocation, including the Core Government Area (KIPP) and surrounding zones, covering 800–850 hectares.

The move has been welcomed by lawmakers, including Ahmad Doli Kurnia of the Golkar Party. He said the regulation clarifies the government’s commitment to the project amid public concerns over shrinking budget allocations and doubts about whether the capital relocation would continue.

“This presidential regulation is a clear signal that the Prabowo administration will continue with plans to establish IKN as the capital,” Doli said. He also confirmed that the Golkar Party has consistently supported the IKN project since its inception and participated in drafting the capital relocation law.

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