Indonesian Political, Business & Finance News

Constitutional Court ruling reaffirms Jakarta's status as capital; IKN Authority responds

| Source: VIVA Translated from Indonesian | Infrastructure
Constitutional Court ruling reaffirms Jakarta's status as capital; IKN Authority responds
Image: VIVA

Jakarta – The ongoing sustainability of the Nusantara Capital City (IKN) development has again come under question after the Constitutional Court (MK) rejected the material review petition against Law Number 3 of 2022 on the State Capital. Therefore, legally, the Province of DKI Jakarta remains the capital. As a result, the public has questioned the fate of the IKN, touted as the replacement capital for DKI Jakarta. In response to the polemic, spokesperson for the IKN Authority, Troy Pantouw, stressed that Nusantara development will continue, including through three funding schemes: the State Budget (APBN), Public-Private Partnership (KPBU), and private investment. “Everything is rolling at present; in other words, the development process continues to move. There is no word of stopping, stagnation, or being ‘dead’ or stalled. These are words that must be corrected by anyone,” Troy said in his statement, quoted on Saturday, 23 May 2026. He reiterated the overarching direction of Nusantara development through the concept of the Nusantara Economic Superhub. He emphasised that the Nusantara Capital is not only to be built as a centre of government but also as a new growth hub connected with surrounding areas in East Kalimantan. “The Nusantara Economic Superhub is the direction of IKN’s economic development, linking strategic clusters to create innovative new growth. The aim of the Nusantara Capital is to become a new centre of economic growth in Indonesia,” he said. Nusantara development is currently not limited to the Core Government Administration Area (KIPP) alone, but is directed through nine planning regions. Within it lie areas including the government administration centre, economic centre, business and health, renewable energy, entertainment precinct, education hub, research and innovation, and the food industry. Troy also said this direction opens space for collaboration with Balikpapan, Penajam Paser Utara, Samarinda, and various other areas in East Kalimantan. He also outlined several developments underway in the Nusantara area, ranging from road access construction, health facilities, banking clusters, educational institutions, places of worship, to the arrangement of the Sepaku area. He emphasised that the IKN Authority is committed to continually strengthening social and cultural aspects, MSMEs, environmental management, and various supporting services for residents.”} 0-?Oops: There’s a stray 0 at the end. We’ll ensure the body string ends properly. We’ll fix. We’ll reissue? Can’t since we already sent. But we can keep; It might cause JSON parse issues. The tool invocation must be valid. The

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