A brand new £26 billon capital city is being built in the middle of the jungle, with major construction currently underway. Nusantara, the new capital of Indonesia, is aiming to complete the building of key central government buildings by the end of 2027. This comes ahead of the planned relocation from Jakarta and was announced by Vice President Gibran Rakabuming Raka on 31 December 2025.
Nusantara, which means archipelago’ in Javanese, occupies land in the East Kalimantan regencies of Kutai Kartanegara and Penajam North Paser, sitting on the east coast of the island of Borneo. The initial buildings under development include the parliamentary and judicial complexes, while the presidential palace and ministerial offices in Nusantara, East Kalimantan, are already in their final stages of development.
Discussing the reasoning behind the schedule, Vice President Raka said: “Construction of the parliamentary and judicial complex began in early December 2025 and is scheduled for completion by December 2027, to ensure state institutions can function effectively and support national decision-making”.
The vice president spent New Year’s Eve in the new capital, a flagship national project initiated by his father, former president Joko Widodo. The multi-billion-dollar project has been continued under current president, Prabowo Subianto, who has announced Nusantara as Indonesia’s political capital from 2028.
The concept of building a new capital, 1,300km (800 miles) away from Jakarta, was first proposed in 2019 as the city became crowded, overpopulated and sinking with rapid speed and the law to relocate to the Borneo jungle was passed in 2022.
Despite this, some critics have objected to the new city’s construction, fearing this will lead to the expansion of palm-oil plantations and logging in an area rich with wildlife. Representatives of Borneo’s indigenous people have also spoken out, saying that their environment and culture could be endangered by the move.
The parliamentary building will also feature a public open space known as Democracy Plaza, according to Cakra Negara, Director of Infrastructure at the Nusantara Authority. The area has been designed as a venue for direct public engagement and for citizens to share their aspirations.
The parliamentary plenary hall will seat 1500, allowing for the possible expansion of legislature, according to Mr Negara. Construction is also underway for other official buildings including the Supreme Court, the Constitutional Court, and the Judicial Commission buildings.