Indonesia's new capital Nusantara remains sparsely populated as funding stalls

Nusantara, a newly built city deep in Borneo’s rainforest, was envisioned to host 1.2 million people by 2029 and become Indonesia’s political hub. As of now, only around 10,000 residents—mostly civil servants and defence staff—live in the core, while the surrounding area holds about 147,000 people. The project, launched by former President Joko Widodo, was initially funded at roughly $45 billion, but President Prabowo Subianto has slashed the annual budget from 43 trillion IDR in 2024 to 6.3 trillion IDR in 2026.

Despite a presidential regulation aiming for political-capital status by 2028, the Constitutional Court ruled Jakarta remains the official capital until another decree is signed. Private investors have committed $6 billion, and public-private partnerships add another $10 billion, yet analysts warn the venture could become a costly white elephant. Residents like OIKN employee Ranty Wiyati remain optimistic, citing better living conditions and the chance to shape a new urban model.