Nusantara Capital City of Republic of Indonesia

Nusantara Capital City or IKN - Ibu Kota Nusantara is Indonesia's new planned capital city.

1. The Basics

- Location: East Kalimantan Province, on the island of Borneo. Specifically in North Penajam Paser Regency and Kutai Kartanegara Regency

- Why move?: Jakarta is overcrowded, sinking ∼10cm per year, and prone to floods. Only 0.8% of Indonesia's land but 10% of population

- Vision: To build a "Sustainable Forest City" as the center of government that represents Indonesia as a nation

- Name: "Nusantara" = "Archipelago" in Old Javanese. Announced by President Jokowi in 2022

2. Key Concepts

IKN is designed with 4 main principles:

1. Green: 65% of area will be green space + forest. Net Zero Carbon target by 2045

2. Smart: Digital-first government, smart mobility, smart utilities

3. Inclusive: A city for all Indonesians, not just elites

4. Resilient: Less disaster risk than Jakarta

The core area is only 6,671 hectares. The larger development area is 256,142 hectares - about the size of Jakarta.

3. Timeline

- Law passed: Jan 2022 - UU IKN

- Groundbreaking: Started mid 2022

- Phase 1: 2022-2024 - Build core government area. Presidential Palace, VP Palace, Ministries, Parliament

- Independence Day 2024: First ceremony held in IKN on Aug 17, 2024

- Full target: 2045 - Complete move of civil servants and become a world-class city

4. What's Being Built

- Government Core: Presidential Palace shaped like Garuda, 16 ministries, DPR/MPR building, Supreme Court

- Infrastructure: Toll roads, airport "Nusantara Airport", smart grid, water management, waste-to-energy

- Residential: Housing for civil servants, military, police

- Investment focus: Green technology, renewable energy, health, education, and digital economy. Not moving all of Jakarta's business there

5. Funding Model

Not 100% from state budget. Model is PPP - Public Private Partnership.

Target: 20% State Budget, 80% from private investment, SOEs, and cooperation.

Many countries including Austria, UAE, South Korea, Japan are exploring green tech and infrastructure partnerships.

In short

Nusantara is Indonesia's bet to build a new capital from scratch in the middle of Borneo. The goal is to decentralize development to Eastern Indonesia, fix Jakarta's problems, and create a modern, green, smart capital for 2045.