Fuad Iqbal Abdullah, Jakarta – The House of Representatives has approved a Rp 6 trillion ($333.5 million) budget allocation for the development of the country's future capital, Nusantara, in 2027, significantly below the Rp 15 trillion requested by the Nusantara Capital Authority.
The funding approval signals that construction of the new capital will continue despite lingering skepticism over the megaproject, which critics have at times labeled a "ghost town."
Nusantara Capital Authority Head Basuki Hadimuljono said the approved budget would support ongoing infrastructure development while the agency continues to seek additional funding under a multi-year financing scheme.
"I believe our funding needs will be met, God willing. For 2027, around Rp 6 trillion has been allocated," Basuki told Beritasatu.com during a visit to Nusantara in East Kalimantan on Monday.
"We have also submitted a proposal because the funding is multi-year. Batch 1 and Batch 2 cover 2025-2027, while Batch 3 runs from 2026-2028. Altogether, the total budget amounts to Rp 48 trillion," he added.
The approved funding is expected to begin supporting this year's projects, including the construction of housing for Indonesia's legislative and judicial institutions. A total of 45 residential towers are scheduled to be built between 2026 and 2028.
Nusantara was officially designated Indonesia's future capital in 2022 as part of President Joko Widodo's plan to shift the country's administrative center from Jakarta, which faces chronic traffic congestion, air pollution and land subsidence. The relocation is being carried out in stages as infrastructure is completed.
Under Indonesia's current roadmap, Jakarta will remain the country's legal capital and commercial center under Law No. 2/2024, while Nusantara will gradually assume the role of political capital, housing the executive, legislative and judicial branches of government.
The Authority has begun construction on the legislative and judicial complexes in late 2025. Government data show that nearly 150,000 people now live in the broader Nusantara area, reflecting the project's expanding economic activity and population base.