Penajam Paser Utara, E. Kalimantan. Vice President Gibran Rakabuming is expected to begin working from the vice presidential palace in Nusantara, Indonesia’s planned new capital in East Kalimantan, later this year, according to the head of the Nusantara Capital Authority (OIKN).

OIKN chief Basuki Hadimuljono said Saturday that preparations were nearing completion, with several vice presidential staff members already based in Nusantara.

“God willing, this year,” Basuki told reporters in Nusantara, Penajam Paser Utara district, when asked when Gibran would begin working from the palace.

Construction of the vice presidential palace is almost complete, with furniture and other fittings being installed. The remaining furniture procurement is currently being tendered, Basuki said.

The palace is also being opened to the public from Aug. 15-17 as part of celebrations marking Indonesia’s 81st Independence Day. Visitors can access the site from 10 a.m. to 5 p.m. local time.

Prabowo Remains Committed to Nusantara

Meanwhile, Basuki said the government remains committed to developing Nusantara despite the new capital not being specifically mentioned in President Prabowo Subianto’s recent state address or among the eight priority programs outlined in the proposed 2027 state budget.

He said Nusantara's development is included under the broader infrastructure and regional development cluster in the budget and therefore does not need to be listed as a standalone program.

The government has committed Rp48 trillion ($2.7 billion) to the continued development of Nusantara, with funding already being disbursed in stages, Basuki said.

More than Rp10 trillion was allocated for the project in 2025, while about Rp6 trillion has been made available in 2026. Additional funding is expected in 2027, he said.

OIKN has also begun taking responsibility for the operation and maintenance of buildings handed over by the Public Works Ministry and the Housing and Settlement Areas Ministry.

The authority has allocated around Rp500 billion this year for the operation and maintenance of facilities in Nusantara, Basuki said.

Nusantara, located in East Kalimantan on the island of Borneo, is being developed as Indonesia's new political capital to replace Jakarta. The government has been gradually moving state institutions and officials to the new administrative center.

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