Nusantara, also known as Ibu Kota Nusantara, or IKN, is Indonesia’s ambitious new capital city under construction in East Kalimantan. Hopes abound that it will set high benchmarks for sustainable urban development. But how will these aspirations translate into reality?

At the heart of the city’s environmental strategy lies its identity as a ‘forest city’, where architecture takes a deliberate back seat to vegetation. Buildings must also meet stringent green building codes.

The Vice President’s Palace (“Huma Betang Umai”) designed by SHAU with APTA and Cilaki Studio, exemplifies this approach. It responds directly to site conditions and climate patterns.

The design of the Vice President’s Palace was led by SHAU with a focus on sustainability, integrating site-specific climate and microclimate research.
Courtesy of SHAU

The project of Nusantara faces challenges that extend far beyond city limits. While nearby cities are experiencing economic benefits from the development, questions remain about supply chains and their environmental impact.

The ripple effects of Nusantara’s development are being felt in nearby cities, with Balikpapan seeing rising land prices and increased demand for hotels and housing.
Courtesy of URBAN+ and Ministry of Public Work and Housing of Indonesia

Perhaps the most pressing challenge is attracting people to this new city. The strategy includes incentives like reduced taxes, but creating a vibrant urban community requires more than economic benefits.

The immediate focus is establishing government functions and tourism, with business activities expected to follow. The long-term goal is a full-scale city where government, business, and tourism coexist.

The Kemenko Buildings were designed by URBAN+ to emphasise public spaces and ground-floor activities, with elevated walkways connecting building clusters.
Courtesy of URBAN+ and Ministry of Public Work and Housing of Indonesia

Critics worry that building Nusantara might divert resources from addressing Jakarta’s urgent problems, including its sinking ground and severe congestion. However, the plan to relocate Indonesia’s capital stretches back to colonial times.

Jakarta will remain Indonesia’s economic centre, with only government functions moving to Nusantara. In fact, the relocation might offer Jakarta new opportunities to reinvent itself as a global city, Ridwan suggests.

Jakarta will retain its role as Indonesia’s business capital, while government operations move to new buildings in Nusantara, such as the Vice President’s Palace.
Courtesy of SHAU

Can Nusantara become both liveable and lovable? The former might be achievable through careful planning and design. The latter requires time, allowing culture and community to evolve organically.

As construction continues and the first residents prepare to move in, the world watches to see if this ambitious experiment in city-building can deliver on its promises.