The Indonesian Capital City Authority (OIKN) has confirmed that physical development for the judicial, legislative, and office complex areas will begin simultaneously in December 2025 under a multi-year contract worth Rp20 trillion.
"The tender for the development of the judicial and legislative branches was successful in mid-year, and a multi-year contract for the 2025, 2026, and 2027 periods was signed," said Basuki Hadimuljono, Head of the IKN Authority, in Samarinda, East Kalimantan, on Wednesday.
He explained that connectivity on the ground is now showing progress, as the roads connecting all of the Core Government Center Areas (KIPP) Segments 1A, 1B, and 1C to the main toll road access are almost 100 percent complete by the end of this year.
The availability of adequate road access has triggered the acceleration of the physical realization of private investment in the surrounding area, as evidenced by the Sabdi Waluya Hospital building which is almost completed and Taruna Nusantara High School which is ready to operate partially starting in March 2026.
"The government is now actively urging the Association of State-Owned Banks (Himbara), which just held a groundbreaking ceremony last year, to immediately begin construction so that the business district can be formed soon," Basuki said.
He confirmed that all of the massive construction activities in 2025 will not rely solely on state funds, but will instead utilize a combination of financing from the state budget, government-to-business partnerships (KPBU), and pure private investment.
The government continues to strengthen basic infrastructure support for the comfort of residents by signing new contracts for the construction of 24 additional reservoirs to maintain raw water supplies and control flooding.
"The government is arranging the construction phases in stages, with government infrastructure work being accelerated by the end of this year, while construction of the new residential sector is scheduled to begin in 2026," Basuki said.
Accelerating the physical development of various state facilities plays a crucial role in meeting the target of Presidential Regulation Number 79 of 2025, which mandates that Nusantara must be fully functional as Indonesia's political capital by 2028.
"Overall, all construction roadmaps and physical achievement targets currently underway are considered to be on track and in line with the government's initial planning for the development of the new capital city," Basuki said.
