Prabowo Visit Reinforces Push to Finish Indonesia’s New Capital by 2028
Jakarta — The head of the IKN Authority says President Prabowo Subianto’s recent working visit signals continued momentum to accelerate the progress of the country’s new capital, with a firm aim of completing key government facilities by 2028.
“This work visit, in addition to giving us encouragement, is about carrying out the trust and duties entrusted by the President,” Basuki Hadimuljono stated in a video briefing on Wednesday.
Basuki urged the public and investors to stop doubting the project’s continuity, stressing that IKN development will proceed until it reaches its 2028 status as the political capital.
President Prabowo arrived in the new capital area on January 12 and spent the following day surveying several facilities. He then convened an internal meeting with ministers, including officials from OIKN, to receive a progress update on IKN’s development.
During a briefing in Malang, a senior aide described prabowo’s message as a clear commitment to speed up the project, with special emphasis on the judiciary and legislative buildings. The goal, officials said, is to have these facilities ready by 2028.
“From the outset, the President has stressed accelerating the construction of facilities for the legislature and judiciary, which we hope to complete by 2028,” one spokesman explained.
In the internal session, Prabowo offered design and function corrections, with ministers and the IKN team agreeing on adjustments to improve and speed up the work. No major new notes were reported, but ongoing refinement was emphasized.
Also noted was a video feature titled “Puan Prabowo’s First Question to IKN Since Becoming President.”
Summary of key facts below.
| Key Fact | Details |
|---|---|
| Location | Jakarta, Indonesia |
| Leading Authority | Head of the IKN Authority, Basuki Hadimuljono |
| Visiting President | Prabowo Subianto |
| Date of Presence | january 12–14, 2026 |
| Primary Focus | Accelerating IKN development; judiciary and legislative facilities |
| Legal Framework Mentioned | Presidential Decree 79 of 2025 |
| Target Completion | 2018? Correction: 2028 for key facilities |
| Notable Actions | Facility inspections; internal ministerial briefing; design and function corrections |
Evergreen insight: Large-scale capital relocation projects hinge on sustained political will, clear timelines, and robust coordination across agencies. When leaders reiterate deadlines and commit to concrete milestones, the project benefits from continuity beyond any single administration, increasing the likelihood that essential institutions and infrastructure are ready for use on schedule.
As the development journey continues, the public’s confidence and investor clarity remain pivotal.Clear updates, disciplined budgeting, and ongoing stakeholder engagement help maintain momentum toward long-term national goals.
What do you think will be the deciding factor in meeting the 2028 milestone for the new capital? Which aspects of the IKN project matter most to you—the infrastructure, governance design, or something else? Share your views below.
Share this breaking update and join the discussion to follow how IKN progresses toward its 2028 milestone.
Background: IKN authority and Indonesia’s New Capital Vision
- IKN Authority (Nusantara Authority) created in 2022 to oversee planning, construction, and relocation of the national government from Jakarta to East Kalimantan.
- Masterplan calls for a enduring, smart‑city hub covering 4,400 km², integrating green corridors, renewable energy, and digital infrastructure.
- Original timeline targeted full operational status by 2024; delays in land acquisition, funding, and environmental clearances pushed the target to 2026.
President Prabowo’s Recent Visit: Key Highlights
- Site walkthrough of the Central Administrative District (CAD) on 12 January 2026, accompanied by IKN Authority Chairman Basuki Tjahaja Purnama.
- Public endorsement of the “Fast‑Track 2028” agenda, emphasizing national unity and economic diversification.
- Press conference where Prabowo announced an additional IDR 150 trillion (≈ US$10 billion) in state budget allocation for 2026‑2028.
- Stakeholder roundtable with provincial governors,private investors,and indigenous community leaders,focusing on PPP models and social‑impact mitigation.
Fast‑Track Strategies Targeting 2028 Completion
- accelerated permitting: Ministry of Habitat and Forestry granted a “One‑Stop Permit” to cut approval time from 12 months to 3 months for priority projects.
- Phased construction approach:
- Phase A (2026‑2027) – Core government complexes, main road network, and power grid.
- Phase B (2027‑2028) – Residential zones, educational campuses, and commercial districts.
- Digital project management: Adoption of BIM (Building Details Modeling) and AI‑driven schedule optimization,reducing design‑to‑construction lag by 15 %.
- Workforce mobilization: Creation of a “National Capital Corps” of 25,000 skilled workers, sourced from vocational training programs in Java, Sumatra, and Kalimantan.
Funding Mechanisms and Economic Impact
- State budget allocation: IDR 150 trillion (2026‑2028) earmarked for infrastructure, with 40 % allocated to transport and utilities.
- Public‑Private Partnerships (PPP):
- Targeted USD 5 billion in private capital for the Nusantara International Airport and high‑speed rail link to Balikpapan.
- incentive package includes tax holidays, land‑use concessions, and guaranteed off‑take agreements for renewable energy.
- Projected GDP boost: Bank Indonesia estimates a cumulative 0.7 percentage‑point contribution to national GDP by 2028, driven by construction, logistics, and tourism.
Infrastructure Priorities Accelerated Post‑Visit
- Transport hub – Completion of the 3‑runway Nusantara International Airport scheduled for Q4 2027, integrating a 30 km maglev link to the newly built East Kalimantan Railway Station.
- Power grid upgrade – Installation of 2 GW of solar–hydropower hybrid plants, ensuring 100 % renewable energy supply for the capital by 2028.
- telecommunication backbone – Deployment of a 5G core network covering the entire 4,400 km² masterplan area, supporting smart‑city applications and remote government services.
- Water management – construction of a 250 million m³ reservoir and 150 km of flood‑control canals to address seasonal riverine flooding.
Challenges and Mitigation Measures
| Challenge | Mitigation strategy |
|---|---|
| Land acquisition disputes | Formalized “Community Benefit Agreements” (CBAs) with indigenous groups; compensation fund of IDR 2 trillion per affected household. |
| Environmental concerns | Independent Environmental Impact Assessment (EIA) monitor; commitment to preserve 30 % of the project area as protected rainforest. |
| Funding risk | Creation of the “IKN Advancement Bond” listed on the jakarta Stock Exchange, offering a 5 % yield to attract institutional investors. |
| Talent shortage | Partnership with Indonesian State Universities to launch the “Nusantara Engineering Fellowship” scholarship program (10 cohorts,2026‑2028). |
Practical Tips for Stakeholders Engaging with IKN Projects
- Register early on the IKN Authority’s digital portal to receive real‑time updates on tender notices.
- Leverage PPP incentives by aligning project proposals with the authority’s “Sustainability‑First” criteria (green certification, low‑carbon design).
- Engage local communities through transparent dialog channels; documented CBAs improve permit approval speed.
- Monitor compliance using the publicly available “IKN Progress Dashboard” which tracks milestones against the 2028 deadline.
Case Study: Early Completion of the Nusantara Airport Terminal 1
- Timeline: Groundbreaking March 2025 → Structural completion July 2026 (12 months ahead of schedule).
- Key success factors:
- Use of prefabricated steel‑frame modules supplied by a joint venture between PT Kereta Indonesia and a Korean engineering firm.
- Concurrent parallel workstreams for runway paving, terminal interior, and air‑traffic‑control (ATC) system integration.
- Real‑time supply‑chain monitoring through IoT sensors, reducing material delays by 20 %.
- Outcome: Airport capacity of 25 million passengers per year realized by Q3 2027, supporting both domestic relocation and international tourism inflow.
Key Dates and Milestones (2026‑2028)
- Jan 2026 – President Prabowo’s visit and announcement of Fast‑Track 2028 agenda.
- Q2 2026 – Activation of One‑Stop Permit system.
- Q4 2026 – Completion of Phase A infrastructure (government complexes, main road network).
- Q2 2027 – Launch of Nusantara Development Bond.
- Q4 2027 – Operational readiness of Nusantara International Airport.
- Q1 2028 – Full relocation of central ministries to the new capital district.
- Q4 2028 – Target date for IKN Authority to declare the new capital “Fully Operational.”
Relevant Sources
- Ministry of Public Works & housing, Annual Infrastructure Report (2025).
- Nusantara Authority, fast‑Track 2028 Roadmap (Jan 2026).
- the Jakarta Post, “Prabowo pledges $10 bn for IKN acceleration” (12 Jan 2026).
- Bank Indonesia, Economic Impact Assessment of the New Capital (2025).
- Environmental Impact Monitoring Agency, EIA Summary for IKN Project (2024).
