Construction of key government buildings in Indonesia’s planned new capital city, Nusantara, began in December 2025, according to Basuki Hadimuljono, head of the IKN Authority. The project, encompassing judicial, legislative, and office structures, is being undertaken through multi-year contracts totaling Rp20 trillion.
Infrastructure Development Underway
The tender process for these buildings was completed mid-2025, with contracts spanning 2025, 2026, and 2027 now in place. Alongside building construction, significant progress has been made on core infrastructure. Connecting roads within the Core Central Government Area (KIPP) Segments 1A, 1B, and 1C are nearing 100% completion, linking to the main toll road.
This improved connectivity is anticipated to encourage increased private investment in the surrounding areas, as evidenced by the ongoing construction of the Sabdi Waluya Hospital and the Taruna Nusantara High School, slated for partial operation in March 2026. The Indonesian government is also urging the State-Owned Banks Association (Himbara) to begin construction on previously ground-broken projects to further stimulate business activity.
Funding and Future Stages
Construction is being financed through a combination of state budget allocations, public-private partnerships, and direct private investment. To support future residents, the government has also contracted for the construction of 24 additional reservoirs to ensure a stable raw water supply and provide flood control.
The acceleration of these projects is crucial to meeting the objectives outlined in Presidential Regulation Number 79 of 2025, which mandates that Nusantara be fully operational as Indonesia’s political capital by 2028. Basuki Hadimuljono has stated that current progress remains aligned with the government’s initial development plans. Eight contract packages were signed in early December 2025 to accelerate the second phase of development, focusing on legislative and judicial complexes.
Frequently Asked Questions
When did physical construction of the buildings begin?
Physical construction of the judicial, legislative, and office buildings began in December 2025.
What is the total value of the contracts for the construction?
The multiple-year contract scheme for the construction is worth Rp20 trillion.
When is the Taruna Nusantara High School expected to partially operate?
The Taruna Nusantara High School is targeted to operate partially starting from March 2026.
As Nusantara continues to take shape, how might the development of this new capital impact Indonesia’s economic and political landscape?
