Nusantara Capital Authority Confirms Continued Progress on IKN Development

The Nusantara Capital Authority (OIKN) has stated that the Nusantara development project will continue. OIKN spokesperson Troy Pantouw noted that construction progress has now entered its second phase.

“The overall progress of IKN phase two has reached 22.88 per cent, which is 0.53 per cent faster than planned,” he stated in a briefing on Sunday, 17 May 2026.

This second phase of development is divided into three batches. The first batch was completed last year, encompassing the construction of 12,557 metres of road, the arrangement of green open spaces, and the development of the core government area within IKN.

Currently, OIKN is working to complete the second batch, which has reached approximately 6.14 per cent completion. This batch includes the construction of legislative and judicial buildings, supporting office buildings, road infrastructure within the legislative and judicial zones, retention ponds, and the water supply piping network for the IKN area. The second batch is targeted to be functionally complete by early 2028.

Simultaneously, work on the third batch is set to begin this year. The focus of this phase will be on residential housing for legislative and judicial officials, as well as the construction of road networks and multi-utility tunnels to ensure connectivity within the IKN area. The third batch is also targeted for functional completion in 2028.

Troy stated that government budget cuts have not hindered the progress of IKN development, viewing the policy as a measure to sharpen priorities and optimise resource usage. He noted that such measures do not disrupt national priority targets, including IKN. He added that the primary challenges facing the project are land conditions, weather, and the fluctuating prices of construction materials caused by rising fuel costs, which may affect both timelines and costs.

OIKN’s statement regarding the continuation of IKN development comes in response to a Constitutional Court ruling, which stated that the national capital remains located in Jakarta. Troy noted that OIKN respects the constitutional process of the Court as part of the nation’s democratic and legal mechanisms. He argued that the ruling actually reinforces that the relocation from Jakarta to Nusantara will take effect once a Presidential Decree is issued, as mandated by law.

Previously, the Court rejected a judicial review petition against Law Number 3 of 2022 concerning the National Capital. In its consideration, the Court reviewed the petitioner’s arguments and evidence regarding Article 39, paragraph (1) of the IKN Law. The Court ruled that while Nusantara has been legally and politically established as the capital, the relocation process awaits a Presidential Decree. Constitutional judge Adies Kadir noted that the legal framework ensures the transition remains valid under the provisions of Law Number 2 of 2024.