Archive · 13 Jan 2026
Indonesia's Prabowo Commits to New Capital City
Indonesia's new president, Prabowo Subianto, has promised to continue building a new capital city called Nusantara.
The old capital, Jakarta, is too crowded and sinking.
The new city is being built on Borneo island and is expected to be finished by 2028.
The project costs $32 billion, and Prabowo has approved a budget for it.
However, some experts worry that the government might not have enough money to finish the project because it already has a big budget deficit.
Indonesian President Prabowo Subianto reaffirmed his commitment to the $32 billion Nusantara capital city project.
The new capital is being built on Borneo island to replace overcrowded and sinking Jakarta.
Construction began in 2022, with a completion target set for 2028.
Prabowo approved a budget of 48.8 trillion rupiah ($2.89 billion) for the project until 2029.
Analysts express concerns about the government's fiscal space to fund the project due to a large budget deficit.
- Who
- Indonesian President Prabowo Subianto
- What
- Commitment to the Nusantara capital city project
- When
- January 13, 2025
- Where
- Jakarta, Indonesia
- Why
- To move the capital from overcrowded and sinking Jakarta
- Project Cost
- $32 billion
- Location
- Borneo island, Indonesia
- Current President
- Prabowo Subianto
- Previous President
- Joko Widodo
- Completion Target
- 2028
- Budget Approved
- 48.8 trillion rupiah ($2.89 billion)
- Budget Deficit
- 2.92% of GDP in 2025