The Government of Indonesia has approved a total development budget of IDR48.8 trillion (approx. USD2.95 billion) for the ongoing construction of Nusantara, the country’s new capital in East Kalimantan, through 2028. The funding will support key infrastructure development during the second phase of the project, including facilities for the legislative and judicial branches.
The Nusantara Capital Authority (OIKN) announced that IDR5.05 trillion is allocated for 2026, but a request has been made to raise this to IDR21.18 trillion via an additional IDR16.13 trillion proposal submitted to the Ministry of Finance. The additional funds aim to accelerate the construction of government offices and related infrastructure to ensure readiness by 2028.
The project is part of Indonesia’s broader strategy to decentralise governance from Jakarta and develop a modern, resilient political capital.
