Capital or Not, Nusantara Is Already a Winner
By Jamie McIntyre
Chief Editor, Australian National Review
Founder, LUX Property Group
Debate continues over whether Nusantara (IKN) will officially become Indonesia’s capital city in 2028.
From where I stand, that debate is becoming increasingly irrelevant.
Having recently visited Nusantara while producing a special report for the Australian National Review, I left convinced that Indonesia has already built something extraordinary. Whether Parliament, ministries and government departments ultimately relocate there in full is only one chapter in what I believe will become a much bigger story.
Nusantara has already been designed as a modern, environmentally conscious, master-planned city with world-class infrastructure, beautiful boulevards, extensive parklands, wide roads and striking architecture. It offers something increasingly difficult to find across Asia: room to grow.
If the Indonesian Government proceeds with its original vision and formally establishes Nusantara as the nation’s capital, the city should flourish.
If it doesn’t, I believe Nusantara will still flourish.
The billions of dollars already invested have created an incredible platform for the private sector. Government buildings need not remain government buildings forever. Should some ministries or agencies not relocate, those facilities would likely attract significant interest from corporations, technology companies, universities, research institutions, healthcare providers, financial firms, hospitality groups and multinational businesses seeking premium headquarters in one of Asia’s newest cities.
Businesses are constantly looking for opportunities to operate in modern, well-planned environments rather than battling congestion, ageing infrastructure and soaring land prices in established cities.
Jakarta remains Indonesia’s economic powerhouse, but it also faces well-known challenges associated with rapid urbanisation. Bali continues to attract millions of visitors and investors from around the world, yet land is increasingly limited and development is constrained by planning policies that rightly seek to preserve much of the island’s character.
Indonesia needs more than one great city.
In fact, with a population approaching 300 million people and one of the world’s fastest-growing economies, Indonesia will ultimately need several new master-planned cities over the coming decades.
Nusantara is perfectly positioned to become one of them, regardless of its political status.
It could evolve into a thriving city of nearly two million residents, attracting entrepreneurs, digital nomads, expatriates, retirees, technology companies, financial institutions, universities and innovative businesses looking for a fresh start in a purpose-built urban environment.
Many people around the world already dream of living somewhere with cleaner air, less congestion, better planning and more green space. Nusantara offers exactly that.
From a business perspective, the opportunities are immense.
As Founder of LUX Property Group, we remain enthusiastic about Nusantara’s long-term future. We have submitted a proposal to develop an eco-resort and convention centre in the city and will continue evaluating opportunities as infrastructure progresses, including the opening of the new international airport and further commercial development.
Our interest in Nusantara has never depended solely on whether it becomes Indonesia’s capital.
It depends on whether it becomes a great city.
I believe it will.
In fact, if parts of the government ultimately choose to remain in Jakarta, that may simply create additional opportunities for private enterprise. Office buildings can become corporate headquarters. Government accommodation can be repurposed for professionals and executives. Conference facilities can host international events. Hotels, restaurants, retail precincts and entertainment venues will naturally follow.
Cities succeed because people choose to live, work and invest there.
Nusantara has every ingredient needed to become one of Southeast Asia’s most desirable places to do exactly that.
Looking further ahead, I also believe Indonesia should consider developing several additional master-planned cities across the archipelago over coming decades. Strategic new cities would help ease pressure on Jakarta and Bali, stimulate regional economies, attract international investment and create millions of new employment opportunities.
Nusantara has shown what is possible.
Whether it ultimately becomes the political capital or evolves into Indonesia’s newest commercial, innovation and lifestyle hub, the foundations have already been laid.
History has shown that some of the world’s greatest cities became successful not because governments told people to move there, but because businesses invested, entrepreneurs built companies, families chose to settle, and opportunity followed.
Nusantara has every chance to become one of those cities.
Capital or not, Indonesia has already created something worth celebrating.
