In Penajam Paser Utara, a bustling district in the province of East Kalimantan, the implementation of efficient budget policies in line with Presidential Instruction (Inpres) Number 1 of 2025 has not hindered the ongoing development of Nusantara City’s infrastructure. Nusantara City, slated to become Indonesia’s new capital, spans across parts of Penajam Paser Utara and Kutai Kartanegara regencies, where major infrastructure projects are well underway. The man at the helm of this monumental task is Basuki Hadimuljono, the Head of the Nusantara Capital City Authority (OIKN), who recently shared insights into the city’s progress during a conversation in Sepaku on a sunny Saturday.
Hadimuljono, a former Minister of Public Works and Public Housing, assured that the capital city’s infrastructure development has received approval from the central government. To fuel these ambitious plans, a budget of approximately Rp 48.8 trillion from the state budget, known as the State Revenue and Expenditure Budget (APBN), has been allocated. Additionally, funding from sources outside the APBN has been secured to support the city’s growth. The next phase of development, spanning from 2025 to 2028, will focus on constructing legislative and judicial office buildings, aligning with the vision for Nusantara City to become the political capital by 2028.
As the construction of these key governmental buildings kicks off in April 2025, other projects such as banking offices and various investment ventures will also take shape in this burgeoning urban landscape. Hadimuljono emphasized that OIKN has meticulously planned infrastructure development within the investment zones to ensure swift progress. Projects involving public infrastructure like roads, water supply systems, as well as integrated utility networks and multi-utility tunnels are currently in the tendering phase. Once these projects are finalized, construction is expected to commence shortly after the holiday season and ideally reach completion by 2026, ushering in a new era for the city with the emergence of modern buildings and vibrant new districts.
Looking ahead, Hadimuljono revealed that all OIKN employees will transition to working full-time in Nusantara City by March 2025, marking a significant milestone in the city’s development journey. With this move, the daily operations of the Nusantara Capital City Authority will be seamlessly integrated into the fabric of Indonesia’s new capital, underscoring the commitment to establish a well-functioning administrative hub for the nation.
Future Growth and Community Impact
As the city continues to evolve and expand, there is a keen focus on creating a sustainable and harmonious living environment for its residents. The development of essential infrastructure, such as roads, water systems, and utility networks, not only enhances the city’s functionality but also improves the quality of life for its inhabitants. The careful planning and execution of these projects underscore the government’s commitment to fostering growth while prioritizing the well-being of the community.
Expert Insights and Long-term Vision
According to urban planning experts, the strategic development of Nusantara City exemplifies a forward-thinking approach to urban growth. By integrating various sectors, from government offices to financial institutions, the city aims to establish a robust foundation for long-term prosperity and innovation. This holistic vision for Nusantara City underscores the importance of sustainable urban planning practices and collaborative efforts between public and private entities to create a thriving metropolis that meets the needs of its diverse population.
In conclusion, the journey towards building Nusantara City as Indonesia’s new capital is not just a monumental infrastructure project—it is a testament to the nation’s vision for progress, prosperity, and unity. With each milestone achieved and every new building erected, the city comes one step closer to realizing its full potential as a modern, inclusive, and dynamic capital that reflects the spirit of Indonesia’s vibrant culture and diverse heritage. Through careful planning, strategic investments, and a shared commitment to excellence, Nusantara City is poised to stand as a shining beacon of growth and opportunity for generations to come.
