A Series of Facts on the Development of IKN
The Constitutional Court’s decision in case Number 71/PUU-XXIV/2026 states that the status of Indonesia’s capital remains in Jakarta and not in the Nusantara Capital (IKN) in East Kalimantan. According to the Court, Nusantara has legally and politically been designated as the capital. However, the relocation process is still awaiting a presidential decision.
Thus, Constitutional Court Justice Adies Kadir stated that until a presidential decision on moving the Capital from Jakarta to IKN is established, the capital remains based in Jakarta.
To date, IKN development is at risk of stalling because President Prabowo Subianto does not prioritise it as his predecessor Joko Widodo did. Last year, Prabowo designated IKN as the political capital starting in 2028. Here is a recap of IKN development.
Vice President Gibran to Office in IKN
Vice President Gibran Rakabuming Raka will begin working from IKN in the near future. Head of the Nusantara Capital Authority (OIKN) Basuki Hadimuljono projects that Gibran will vacate his Jakarta office this year.
During a meeting with Commission II of the House of Representatives on 30 March 2026, Basuki stated that around 50 vice presidential staff have been assigned to prepare for Gibran’s move to IKN. “I think yes (he will office in IKN) because he has already assigned 50 staff there for the preparations,” said Basuki.
According to Basuki, the Vice President’s office has been completed, so Gibran can occupy it soon. Member of Commission II of the House of Representatives Deddy Sitorus proposed that Gibran and several ministers start occupying IKN so that the buildings there do not deteriorate and maintenance is not wasted.
Jokowi’s eldest son then invited Deddy to office in IKN. “Because IKN has been designated as the political capital in 2028, state administration from the executive, judiciary, and legislative sides must be fulfilled,” he said through a written statement sent by the Vice President’s Secretariat on Thursday, 9 April 2026.
Reasons Prabowo Wants IKN as Political Capital in 2028
Presidential Regulation Number 79 of 2025 on the Updating of the 2025 Government Work Plan outlines Prabowo’s desire to make IKN the political capital in 2028. The document, signed by Prabowo on 30 June 2025, explains that the relocation of the government centre to IKN will be done gradually with a final target of making Nusantara the political capital. This step includes building the core government centre area (KIPP) and relocating civil servants (ASN).
According to State Secretary Minister Prasetyo Hadi, the designation of the political capital is intended so that by 2028 IKN has government centre facilities. “(The purpose of designating IKN as the political capital) means that within three years it is hoped that facilities for the three political entities—executive, legislative, judiciary—can be completed,” said Prasetyo when met at the Parliament Complex of the House of Representatives on Tuesday, 23 September 2025.
The Gerindra Party politician stated that the Prabowo administration is committed to continuing IKN development. Thus, by 2028, buildings and facilities for the House of Representatives, Supreme Court, Constitutional Court, up to the Judicial Commission will be ready for use.
Prasetyo emphasised that there is no difference in meaning between IKN becoming the state capital and IKN as the political capital. He assured that there is no change from the initial goal of IKN development initiated during the 7th President Joko Widodo’s era, where the Republic of Indonesia’s capital in Jakarta will be moved to IKN.
He also emphasised that designating IKN as the political capital does not mean separating the government centre and the economic centre in Indonesia. “It is not then becoming a political capital or economic capital,” he said.
IKN Development in 2026 to Cost Rp 6 Trillion Budget
Head of OIKN Basuki Hadimuljono assured that Nusantara Capital development this year will use a budget of Rp 6 trillion from the State Revenue and Expenditure Budget (APBN). This follows the issuance of the Budget Implementation List (DIPA) from the central government for several projects.
“With the large budget allocated for various strategic projects in IKN, its management must be accompanied by high responsibility and carried out transparently,” said Basuki on Friday, 2 January 2026, quoted from Antara.
With the DIPA in place, Basuki then inaugurated and appointed treasury officials in the OIKN work units, with the inauguration held on Wednesday, 31 December 2025. The inaugurated work units are budget/b goods user representatives, commitment-making officials, payment order signing officials, and expenditure treasurers.
For the 2026 Fiscal Year, OIKN has appointed 6 heads of work units, 24 commitment-making officials, 5 payment order signing officials, and 3 expenditure treasurers.
Uncertainty Over IKN’s Fate
Amid the uncertainty of IKN development, an idea emerged to make IKN a provincial capital. On 18 July 2025, Deputy Chairman of the Nasdem Party Saan Mustopa requested that the government issue a moratorium on IKN development due to fiscal capacity and national priorities.
In addition, there is also an idea to make IKN a transit palace for the president. Of course, these ideas arise because building and relocating the capital requires a large budget.
In total, until completion, IKN development requires a budget of Rp 440 trillion. Meanwhile, up to the end of 2024, the budget already absorbed reaches Rp 71.8 trillion.
First Announced in August 2019
The starting point of this grand plan began when Jokowi officially announced East Kalimantan as the location for the new capital on 26 August 2019 at the State Palace. The chosen location is partly in North Penajam Paser Regency and partly in K