Indonesian Political, Business & Finance News

IKN Development Accelerates, Dozens of Projects Rushed to Meet 2028 Political Capital Target

| Source: VIVA Translated from Indonesian | Infrastructure
IKN Development Accelerates, Dozens of Projects Rushed to Meet 2028 Political Capital Target
Image: VIVA

The development of Ibu Kota Nusantara (IKN) continues to show significant progress. Entering Phase II of construction, the IKN Authority is accelerating various strategic projects to meet the target of making IKN Indonesia’s political capital by 2028, as mandated in Presidential Regulation No. 79 of 2025. This commitment is evident in the increasingly massive infrastructure works involving the government, business entities, and private investors. To ensure all projects proceed on target, the IKN Authority routinely conducts evaluations with relevant ministries, investors, and construction service providers. The latest evaluation was held at the Multifunction Hall, Kemenko 1 Building, Central Government Core Area (KIPP) IKN, on Tuesday, 14 July 2026. This forum serves as a means of coordination to align strategic issues and overcome obstacles arising during the construction process. The acceleration of IKN development is carried out through three financing schemes: the State Revenue and Expenditure Budget (APBN), Government Cooperation with Business Entities (KPBU), and private investment. Currently, the IKN Authority manages a total of 40 physical work packages. Of this number, 16 packages are being prepared to enter the tender process. Meanwhile, nine work packages were successfully completed throughout 2025, and the remaining 15 packages are still in the construction phase and are being pushed for completion. Ongoing projects cover various essential infrastructures to support the operations of the new capital. These developments include office buildings, the judicial complex, the legislative complex, road networks, reservoirs, retention ponds, and drinking water pipeline infrastructure as a basic need for urban areas. These projects form the main foundation so that IKN can function as the national government centre according to the set target. The Ministry of Public Works is also accelerating development, handling a total of 90 work packages. To date, 78 packages have been completed, while 12 other packages are still under construction. Strategic projects currently underway include the construction of the IKN Toll Road and the Duplication of the Pulau Balang Short Span Bridge, which serves as a crucial access point to the new capital area.

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