The Government of Indonesia has formally designated Nusantara (IKN) in East Kalimantan as the country’s new political and administrative capital, with all three branches of government set to relocate by 2028. The plan, backed by Presidential Regulation No. 79 of 2025, elevates IKN’s development as a top national priority in the government’s 2025 work plan.
The regulation allocates IDR36.25 trillion (USD2.2 billion) for 2025, with IDR18.12 trillion directed toward building a sustainable, smart city and spurring Kalimantan’s GDP growth to 5.8 per cent. The remaining IDR17.82 trillion will fund the Core Government Area (KIPP), covering around 800–850 hectares to house ministries, parliament, the Supreme Court, and civil service facilities.