World · East Asia & Pacific · 2 hrs ago
Nusantara remains largely empty as Indonesia cuts its budget
Indonesia is building Nusantara in East Kalimantan on the island of Borneo, more than 1,200 kilometres from Jakarta.
Former president Joko Widodo launched the project in 2019 to move the capital and create a centre for growth beyond Java.
The city has about 10,000 residents, despite an earlier target of 1.2 million by 2029.
The plan was also to make Nusantara a hub for 1.9 million people by 2045, and it was expected to cost about $45 billion.
Jakarta faces severe congestion, poor air quality and flooding, with about 40 per cent of the city below sea level.
Annual funding for Nusantara fell from 43 trillion rupiah in 2024 to 13 trillion in 2025 and 6.3 trillion in 2026.
President Prabowo Subianto has shifted large parts of the budget to other policies and has spoken little about the city’s development.
Nusantara, Indonesia’s planned new capital on Borneo, has about 10,000 residents despite plans for much larger populations.
The city’s annual budget fell from 13 trillion IDR in 2025 to 6.3 trillion IDR in 2026.
Construction began in 2022, with the project intended to shift the capital away from Jakarta.
Former president Joko Widodo promoted Nusantara as a centre for Indonesia’s islands and a driver of future economic growth.
President Prabowo Subianto has shifted large portions of the budget to policies including a nationwide school meals program.
- Who
- Indonesia’s government, led by President Prabowo Subianto, is funding the Nusantara project.
- What
- Nusantara remains sparsely populated as its annual budget is cut. About 10,000 people have moved in so far.
- When
- The article was published on October 19, 2026. The city’s annual budget was 13 trillion IDR in 2025 and 6.3 trillion IDR in 2026.
- Where
- Nusantara is in East Kalimantan on Borneo, more than 1,200 kilometres from Jakarta.
- Why
- It was planned as Indonesia’s new capital and as a centre for the country’s islands and future economic growth. Jakarta faces overcrowding, poor air quality, traffic congestion and flooding.
This story does not have two clearly opposing sides.
Former president Joko Widodo made the call to build a new capital in Borneo.
Construction began on Nusantara.
Widodo celebrated Independence Day at the newly constructed palace in Nusantara.
Indonesia spent about 43 trillion IDR on Nusantara.
The city’s annual budget was cut to 13 trillion IDR.
The city’s annual budget was cut again, to 6.3 trillion IDR.
- Residents
- About 10,000 people have moved to Nusantara.
- Location
- East Kalimantan, Borneo, more than 1,200 kilometres from Jakarta
- Budget, 2024
- About 43 trillion IDR
- Budget, 2025
- 13 trillion IDR
- Budget, 2026
- 6.3 trillion IDR
- Planned cost
- About $45 billion