Indonesia’s ongoing plan to relocate its capital to East Kalimantan, known as Nusantara, marks the most recent development in a dialogue that has spanned over 100 years. Back in 1916, during Dutch colonial rule, there were proposals to shift the administrative centre from Batavia (modern-day Jakarta) to Bandung. The rationale, as reported by Liputan 6, stemmed from concerns about Batavia’s tropical climate, which was viewed as detrimental to health and productivity. Bandung’s more temperate environment was seen as a preferable alternative.

Following independence, the conversation resurfaced. President Soekarno floated the idea of Palangkaraya in Central Kalimantan as a new capital. He envisioned it as a geographically balanced centre of governance, aiming to diminish Java’s overwhelming influence. Though this plan did not materialise, President Soeharto later revisited it—again, without concrete results.

It wasn’t until President Joko Widodo’s tenure that the relocation gained serious momentum. On August 16 2019, during his state address, he declared his intention to move the capital to East Kalimantan, requesting support from both the national parliament and the public. The move was pitched as a strategic effort to promote equitable national development.

Progress and political milestones

While the announcement came in 2019, formal actions commenced in 2021. According to Kompas, on September 29 that year, the government submitted a draft bill on the new capital to the House of Representatives. A special committee was formed to deliberate, including a study trip to Kazakhstan—another country that had relocated its capital. Although the trip drew criticism for taking place during the COVID-19 pandemic, parliament defended it as pre-planned.

The legislation was passed on January 18, 2022, creating the legal foundation for the move. This included new governance structures, funding mechanisms, and zoning plans. The government is currently drafting nine implementing regulations to cover aspects such as city planning, asset management, and civil servant transitions.

Recent developments and delays

Since its official launch in 2019 and legal greenlight in 2022, Tempo reported that the Nusantara initiative has made visible progress. As of March 1, 2025, approximately 500 personnel from the governing body overseeing Nusantara had moved, with an additional group of 582 future government employees expected to join them by June. However, the broader migration of government employees has been delayed. Initially expected by October 2024, the move was postponed due to restructuring within ministries under the new presidency of Prabowo Subianto. According to Rini Widyantini, Minister for Administrative Reform, a comprehensive review will take place in 2026 to align with updated national strategies.

The Nusantara Capital Authority (OIKN) aims to finalise the central government zone by mid-2025. Bimo Adi Nursanthyasto, the authority’s secretary, confirmed that major facilities—such as the Presidential and Garuda Palaces, the State Secretariat, and ceremonial grounds—would be operational, alongside basic services like shops, dining outlets, ATMs, post offices, and vending facilities.

Government offices for key ministries are also expected to be functional by June 2025. The area is being developed as a governance and business hub, with attention to housing, transport, and public services.

To date, 36 ministerial homes, 17 towers for civil servants, and multiple housing blocks for security and intelligence forces have been completed. When all 47 planned buildings are finished, the site will accommodate up to 8,410 personnel. The governing agency plans to add 30 additional high-rises by 2028, increasing accommodation space to 13,810 residents.

On the investment side, Kumparan reported that the authority has raised IDR132 trillion (approximately $7.68bn) through public-private partnerships. These finances are allocated for the development of housing, roadways, and subterranean systems. Notable contributors include Malaysia’s IJM Corporation Berhad and China Harbour Engineering Co. (CHEC).

Further tenders are expected in May 2025 for legislative and judicial facilities. This includes parliamentary offices, court buildings, and residences for lawmakers and judges. Detik Finance noted that IDR8.1 trillion ($482mn) has been earmarked for this phase.

Criticism and challenges ahead

Despite legal backing and financial investment, the project has sparked concern from various quarters. Indigenous communities and environmental groups warn of its impact on forests and ancestral territories. Others question the timing and necessity of the project, particularly when issues like inequality and climate change remain unresolved.

Although the relocation is officially underway, scepticism persists. The Prosperous Justice Party (PKS) remains opposed, advocating instead for funds to be redirected towards healthcare, education, and marginalised regions. Questions about financial transparency and private-sector involvement also remain, as reported by Tempo.

Greenpeace Indonesia has been particularly vocal. Arie Rompas, who leads its forest campaign, criticised the project as a politically driven initiative lacking popular support. He added that Greenpeace had not been consulted during the planning stages.

Academics have voiced similar concerns. Wijayanto Samirin, an economist from Paramadina University, argued that the project exemplifies a “decision first, research later” approach, citing inconsistencies in the government’s justification.

What lies ahead?

Though construction continues and legal mechanisms are in place, the success of Nusantara will depend largely on the current administration’s commitment. The question remains whether President Prabowo will see the project through to completion—or if it will stand as a symbol of an unfinished legacy. Nevertheless, Nusantara will serve as a key indicator of Indonesia’s focus on development in the years ahead.