Construction Continues on Indonesia’s New Capital, Nusantara

Construction continues on Nusantara, Indonesia's planned new capital city on the island of Borneo. The project, announced in 2019 and with construction beginning in 2022, aims to relocate the country's administrative center from Jakarta, which faces challenges including pollution, overcrowding, and subsidence.

The core government district is reported to be nearly complete, but the broader project faces reported delays, funding adjustments, and concerns regarding environmental and social impacts.

Project Overview and Current Status

The Nusantara site is located in East Kalimantan, approximately a two-hour drive from the city of Balikpapan. The city is planned to span nearly 1,000 square miles.

According to officials, the core area of the new city currently houses approximately 10,000 residents, including roughly 1,000 civil servants. The broader metropolitan area, which includes construction workers and existing village populations, is reported to have around 150,000 people.

Key structures in the nearly complete government district include office buildings, a park, a bank building, and a 250-foot-tall metal structure shaped like the Garuda, Indonesia's national emblem. A new dam and water treatment plant have been constructed to provide filtered drinking water to the city.

Reported Challenges and Official Timeline

The project's total estimated cost exceeds $30 billion. Multiple sources report that progress has been affected by logistics, funding challenges, and a presidential election. State funding for the project was reportedly reduced by half for the 2026 fiscal year compared to the previous year.

In 2024, President Prabowo Subianto, who took office in October of that year, signed a regulation designating Nusantara as Indonesia's "political capital" by 2028. This terminology represents a shift from earlier plans that referred to it as the "national capital."

Basuki Hadimuljono, head of the Nusantara Capital City Authority, has stated the project will continue. He indicated that once legislative and judicial buildings are completed, the president plans to move to Nusantara in 2028. Plans exist to relocate an additional 4,100 civil servants to the city.

Long-term population goals cited for Nusantara include 1.2 million residents by 2029 and 2 million by 2045. However, reports indicate that essential supporting infrastructure such as schools, housing, and entertainment venues is not yet in place.

Environmental and Social Impact Reports

Local environmental groups have raised concerns about the construction's effects. The East Kalimantan chapter of the Indonesian Forum for the Environment (WALHI) states that construction has caused mangrove deforestation around Balikpapan Bay.

Fathur Roziqin Fen, executive director of WALHI East Kalimantan, expressed concern that the activity impacts mangrove ecosystems and endangered species such as the proboscis monkey and the owa Kalimantan primate.

The construction of the water infrastructure has also affected the nearby Sepaku Lama village, home to members of the Indigenous Balik tribe. A concrete wall built for flood mitigation along the Sepaku River is reported to prevent villagers from using the river for bathing and washing clothes as they previously did.

The operator of the new water treatment plant stated the city provides free water to the village, but residents are responsible for installing connecting pipes. Reports indicate many families use rainwater or purchase delivered water.

Some residents, including villagers Syamsiah and Pandi, have stated that city officials have informed them they will eventually have to sell their farmland for the project's expansion. Pandi stated he is not interested in selling, citing the land's historical and personal significance. A sacred site for the Balik people, a rhino-shaped rock known as Batu Badok, is now located inside the water treatment plant compound.

Background and Context

The plan to build Nusantara was announced by the administration of former President Joko Widodo, under whom it was a signature initiative. The relocation is intended to alleviate developmental pressures on the current capital, Jakarta, which has a metropolitan population of over 40 million people.

The new capital is planned to be powered by renewable energy.