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Jakarta's days as Indonesia's seat of power are numbered. The government has begun transferring the first wave of civil servants to Nusantara, a purpose-built capital carved from Borneo's rainforest, marking the most ambitious urban relocation project attempted by any nation this century.Between 1,700 and 4,100 government employees will move to the city in East Kalimantan province over the coming months, joining a skeleton crew that has staffed preliminary offices since late 2024. The relocation follows President Prabowo Subianto's signing of Presidential Regulation No. 79/2025, which designated Nusantara as Indonesia's "political capital" with a target completion date of 2028.
## Seven Years From Announcement to First Movers
The idea of moving Indonesia's capital predates the current administration by decades, but took concrete shape on August 16, 2019, when President Joko Widodo used his annual state address to formally propose the shift. Parliament passed the legal framework in January 2022, and bulldozers broke ground six months later.
::timeline
- **Aug 2019** — Widodo announces relocation plan
- **Jan 2022** — Parliament passes IKN Law
- **Jul 2022** — Construction begins in East Kalimantan
- **Aug 2024** — First Independence Day ceremony held in Nusantara
- **Jul 2025** — Prabowo signs regulation setting 2028 target
- **Mar 2026** — First civil servant transfers begin
::end
The city spans 2,561 square kilometers across the Penajam Paser Utara and Kutai Kartanegara regencies, roughly 1,200 kilometers northeast of Jakarta. Its core development zone covers 6,671 hectares, with a legal mandate that 65 percent of the total area must remain forested.
## The $35 Billion Gamble on Borneo
Nusantara's price tag stands at roughly 523 trillion rupiah, or between $32 billion and $35 billion. The government designed the financing to lean heavily on private capital: only 20 percent comes from the state budget, with the remaining 80 percent expected from private and foreign investment through public-private partnerships.
That ratio has proven difficult to achieve. SoftBank Group, which initially expressed multi-billion-dollar interest, withdrew in March 2022. Foreign investment that has materialized comes primarily from Chinese firm Delonix Group at 500 billion rupiah and Russian company Magnum Estate at 800 billion rupiah. Total realized private investment reached approximately 62 trillion rupiah by mid-2025, well short of projected targets.
::stats
- **$35B** — Total estimated cost
- **Rp 62T** — Private investment realized by mid-2025
- **Rp 6.3T** — Proposed 2026 state budget, down sharply from prior years
- **42** — Companies that have committed to invest
::end
For full coverage, visit https://www.linos.ai/world/indonesia-nusantara-capital-relocation/
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