Islamic News: Indonesia Capital Relocation to Nusantara
Indonesia is building a new capital city. This Islamic News report covers the ambitious relocation project to Nusantara in East Kalimantan. The project aims to replace Jakarta as the political heart of the nation. This Islamic News explains the latest developments. It covers the investment progress and the timeline for completion. Islamic News Today confirms that construction is actively ongoing. The city is set to become a modern and sustainable hub.

The Vision for Nusantara
The idea of a new capital was launched under former President Joko Widodo. The goal is to address Jakarta’s many problems. The city is sinking and severely polluted. The vision for Nusantara is a smart and green city. Islamic Finance Guide principles of sustainability are central. The city is designed to be a “forest city.” It will prioritize nature and technology. Hadith Studies Online reminds us of our duty to be good stewards of the earth.
Nusantara is located on the island of Borneo. The development spans a vast area. The project is a major step for Indonesia. It is a chance to create a new center of governance. Islamic News has followed this journey from the start. The goal is to build a city that represents Indonesia’s future.
A Political Capital by 2028
President Prabowo Subianto has set a clear timeline. He aims to make Nusantara the political capital by 2028 . This involves moving the executive, legislative, and judicial branches. The transition will happen in stages. Muslim World News reports on this ambitious goal.
The government is preparing for the move. Vice President Gibran Rakabuming Raka is expected to start working from Nusantara soon . About 50 of his staff members are already based there . This shows the government’s commitment. The timeline is tight but achievable.
Addressing the Constitutional Status
The Constitutional Court’s ruling clarified the legal status. Jakarta remains the capital until the President issues a formal decree . This ruling does not stop the development. It simply sets a legal requirement. The court recognized that Nusantara has been designated as the future capital .
The Nusantara Capital Authority (OIKN) respects the ruling. They have stated that the construction will continue . The presidential decree will be the final legal step. This process provides clarity and order. Islamic Current Affairs show the project is legally sound.
Funding the New Capital
The Nusantara project requires massive funding. The government is using multiple financing sources. These include the state budget and private investment. The total funding commitment has reached Rp257.56 trillion . This shows the scale of the project.
State Budget Allocation
The government has allocated Rp48.8 trillion from the state budget . This funding is for key government buildings. This includes the presidential palace and the vice presidential palace. It also covers legislative and judicial complexes. The budget is being disbursed in phases.
In 2026, about Rp6 trillion has been made available . The government is ensuring accountability. They have appointed financial officials to manage the funds . This oversight is critical for such a large project.
Private Sector Investment
Private investment is a crucial part of the funding. The OIKN has recorded Rp74.54 trillion in private commitments . This involves 67 domestic and foreign investors . They are building hotels, apartments, and shopping centers.
Chinese investment is playing a key role. PT Star Bright International Investment is building a Rp1.25 trillion project . This includes four apartment towers. The project will also have restaurants and retail space. This international interest is a positive sign.
KPBU and Other Schemes
The government is also using a public-private partnership scheme (KPBU). This has secured Rp134.22 trillion for housing and infrastructure projects . This model helps share the financial burden. It also brings private sector expertise.
The OIKN is also exploring other financing models. A study proposed using cash waqf for infrastructure . This is an interesting idea. It would allow the community to contribute. This aligns with Islamic Finance Guide principles of social investment.
Progress on the Ground
Construction in Nusantara is moving at a steady pace. Several key buildings are already completed. Others are well under construction. The government is focused on the core government area.
Key Buildings Under Construction
The presidential palace is a central focus. Construction of the palace is ongoing. The vice presidential palace is nearing completion. Its progress has reached 40 percent . The Secretariat of the President is already 100 percent complete .
The legislative and judicial buildings are also being built. This includes the parliament and the supreme court. The construction is part of the second phase. This is expected to be completed by 2027 . The goal is to have all core facilities ready.
Infrastructure and Public Services
The development is not just about buildings. It also includes essential infrastructure. This includes roads and tunnels. The government is also building a multi-utility tunnel. This is a modern approach to urban planning. Halal Lifestyle Tips highlight the importance of quality infrastructure.
The OIKN is also preparing for operations. They have allocated Rp500 billion for maintenance this year . They are taking over completed buildings. The goal is to create a functioning city. This requires careful planning and management.

Sustainable Development Focus
Nusantara is being built with sustainability in mind. A major initiative is the greening of the city. Over 5 million trees have been planted . The goal is to make the city a true “forest city.” This is a significant environmental effort.
The tree planting is a community effort. It involves residents and officials. A recent event set a MURI record for most trees planted . The focus is on native species. This helps restore the local ecosystem. Islamic News sees this as a positive environmental move.
International and Local Investment
International investors are showing great interest in Nusantara. Companies from China and South Korea are making major commitments. This is a sign of global confidence.
Chinese Investment
The Chinese company PT Star Bright International Investment is a key example. They are building a mixed-use project. This includes apartments and commercial spaces. Construction is already underway . The project is valued at Rp1.25 trillion.
The company’s president director is optimistic about Nusantara . He believes the city will attract more global investors. His interest is a positive signal. It shows the project is gaining international attention.
South Korean and Malaysian Investment
South Korean investors are also involved. Dian Development is set to develop apartments and hotels . Their investment is valued at Rp1.15 trillion. There is also interest from Malaysia. This shows the project’s regional appeal.
The OIKN is supporting these investors. They are providing facilities for their workers. The goal is to speed up their construction . This support is crucial for maintaining momentum. Muslim World News sees this as a sign of economic growth.
The Vision of a Modern Islamic City
Nusantara is being designed with cultural values in mind. There is a proposal for an “Al-Qur’an Skyline” . This would apply Islamic architectural principles. The goal is to create visual and spiritual harmony. This would give the city a unique identity. Islamic Finance Guide principles of balance and order are central.
The “Al-Qur’an Skyline” model would guide high-rise buildings. It is inspired by verses related to height and order . This approach blends modernity with faith. It would help Nusantara stand out globally.
FAQ
What is the status of Indonesia’s capital relocation?
The Constitutional Court has ruled that Jakarta remains the official capital. Nusantara is designated as the future capital. A presidential decree is required for the formal transfer .
When will Nusantara become the capital?
President Prabowo aims to make Nusantara the political capital by 2028 . The move of the executive, legislative, and judicial branches will be completed by then.
How is the project funded?
The project uses multiple funding sources. This includes the state budget, public-private partnerships, and private investment. Total commitments have reached over Rp257 trillion .
Is private investment flowing into Nusantara?
Yes, private investment is growing. 67 investors have committed Rp74.54 trillion. Companies from China, South Korea, and Malaysia are involved .
Conclusion
Islamic News Today confirms that the Nusantara project is a major development. Islamic Current Affairs highlight the progress in 2026. The city is moving towards its 2028 goal. Funding is in place from various sources. The construction is making steady progress. Nusantara aims to be a model for sustainable and smart cities. It also has the potential to reflect Islamic architectural values. Hadith Studies Online encourages progress and good stewardship. The world is watching this historic project unfold.