What is the current status of Indonesia's new capital Nusantara?

Nusantara, Indonesia's ambitious new capital project, is facing an uncertain future as state funding for the project has plunged by over 50% since 2024, and construction has slowed significantly.

How has President Prabowo's administration impacted the Nusantara project?

Under President Prabowo, who took office in October 2024, the annual budget for Nusantara has been slashed from £2 billion in 2024 to just £300 million for 2026, a third of what was originally requested. Prabowo has also quietly downgraded Nusantara's status to a "political capital," raising doubts about its legal standing and future development.

What are the concerns surrounding the Nusantara project?

Local businesses and communities near the new capital have been impacted as the influx of workers has dried up, and environmental groups have raised concerns about the project's impact on the surrounding rainforest and its rare and endangered species. Some experts have even described Nusantara as a "ghost city" that is "unwilling to live."

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Nusantara, Indonesia's New Capital, Faces Uncertain Future as Funding Plunges

29 Oct

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Summary

State funding for Nusantara project has dropped over 50% since 2024
Construction has slowed, and few civil servants have moved to the new capital
Prabowo has downgraded Nusantara to a "political capital" with unclear legal status

Nusantara, Indonesia's New Capital, Faces Uncertain Future as Funding Plunges

As of October 2025, Indonesia's new capital city of Nusantara is struggling to take shape, with state funding for the project plunging more than 50% since 2024. Under the current president, Prabowo Subianto, who took office last October, the annual budget for Nusantara has been slashed from £2 billion in 2024 to just £300 million for the coming year, a third of what was originally requested.

This sharp decline in funding has led to a slowdown in construction, with only around 2,000 civil servants and 8,000 construction workers currently living in the new city, far short of the 2030 target of 1.2 million residents. Prabowo has also quietly downgraded Nusantara's status to a "political capital," although the reasons for this decision remain unclear.