Why Prabowo Wants IKN to Serve as the Political Capital by 2028

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TEMPO.CO, Jakarta - Starting in 2028, President Prabowo Subianto has designated Nusantara Capital City (IKN) in East Kalimantan as Indonesia's political capital. This provision is stipulated in Presidential Regulation (Perpres) No. 79 of 2025, which concerns the update of the government work plan (RKP) for 2025 and was signed on June 30, 2025.

According to the document, the transfer of the government center to IKN will occur gradually, with the ultimate goal of establishing Nusantara as the political capital. This step includes the development of the central government core area (KIPP) and the transfer of civil servants (ASN).

In the annex regarding the change of RKP number 72, the government targets that by 2028, the core area of IKN will be ready for use, with indicators such as the built-up area of KIPP and its surroundings reaching 800-850 hectares, and the construction of buildings and offices reaching 20 percent.

There is also coverage of decent, affordable, and sustainable housing at 50 percent. Basic infrastructure facilities in the area are available at 50 percent. The index of area accessibility and connectivity is at 0.74.

To achieve these targets, the government will expedite the spatial planning of the core area, the construction of office buildings, the provision of housing, supporting infrastructure facilities, and transportation infrastructure connecting IKN with the surrounding areas.

In addition to physical development, the government has also started preparing for the transfer of civil servants. The Perpres targets that by 2028, the number of civil servants relocated to IKN will range from 1,700 to 4,100 people. IKN will also adopt the concept of a smart city. At least 25 percent of digital-based government services are targeted to be operational in Nusantara by 2028.

The government has stated that the development of IKN will continue in 2026. President Prabowo Subianto is reported to have allocated a budget of Rp6.3 trillion for the project.

The IKN budget was indeed not discussed in detail during the press conference on the Draft State Budget (RAPBN) and financial notes on Friday, August 15, 2025. IKN was also not mentioned in President Prabowo Subianto's speech on the draft 2026 APBN at the House of Representatives (DPR).

In 2025, the government allocated Rp13 trillion for the project initiated during President Joko Widodo's administration. The funds consist of Rp5.4 trillion for road paving and work along the roads of the KIPP area, and an additional Rp8.1 trillion for the judicative and legislative areas. The 2025 budget decreased significantly compared to the 2024 allocation, which reached Rp43.4 trillion.

Previously, Head of the IKN Authority, Basuki Hadimuljono, stated that the maintenance costs of the Nusantara capital city reached Rp200-300 billion. "Therefore, President Prabowo wants to expedite its construction," Basuki said at the parliamentary building complex, Jakarta, on Tuesday, July 8, 2025.

An article in Tempo Magazine dated August 10, 2025, mentioned that the construction of IKN is in jeopardy. Several officials revealed that the actual maintenance costs are larger than what Basuki disclosed.

Meanwhile, Bambang Haryo Soekartono, the Gerindra Party's Council of Experts, said that the development of IKN requires attention to the readiness of the transportation infrastructure. Thus, the mobility to the new government center can be ensured. "The government needs to promptly evaluate and decide on the best steps so that the people are not sacrificed for the sake of IKN's development," he said on Sunday, August 10, 2025, quoted from a written statement.

According to a member of the DPR Commission VII, transportation access is key to ensuring the effective mobility to the new government center without burdening the people. Bambang calculated that if 2 million people go to IKN, and the plane ticket costs Rp1.5 million, then the transportation costs of Rp6 trillion for a round trip to IKN will be required.

This figure does not include accommodation at Rp2 trillion per day. The total will amount to Rp8 trillion per day or Rp2.920 trillion per year.

Bambang assessed that if IKN officially becomes the government center, most stakeholders, including large companies, state-owned enterprises, and the DPR, will be heavily reliant on air and sea transportation.

Bambang compared Jakarta with IKN. As the government center, Jakarta has various modes of transportation, ranging from walking and bicycling to motorcycles, cars, and trains.

The Bandung Institute of Technology (ITB) alumnus also highlighted the limitations of air transportation capacity. Indonesia has approximately 450 aircraft with a capacity of 200 passengers each, for a total capacity of 360,000 passengers per day. This is far below the estimated need of two million passengers per day. Sultan Aji Balikpapan Airport has a capacity of 30 planes and 45,000 passengers per day.

Meanwhile, the IKN airport is only able to accommodate around 600 passengers per day. "Where will they (the passengers) be accommodated, and what transportation will be used? This needs to be thoroughly studied," he said.

The development of IKN was aggressively pursued during the second term of former President Joko Widodo. Jokowi even held the August 17, 2025, ceremony at the Presidential Palace of IKN. However, the transfer of the capital city from Jakarta to IKN requires the President's decree.

Minister of State Secretary Prasetyo Hadi explained the reason why President Prabowo Subianto has not yet signed the presidential decree for the transfer of the capital city. Prabowo is still waiting for the readiness of facilities and infrastructure in IKN.

Prasetyo stated that the government estimates that the facilities and infrastructure in IKN can be completed within 3 years. The IKN Authority is currently developing infrastructure to carry out the functions of the legislative, executive, and judiciary.

"We feel that there must be facilities and infrastructure as a prerequisite before the president signs the presidential decree for the transfer of the capital city," he said at the Presidential Palace complex in Central Jakarta on Friday, July 25, 2025.