Indonesia Must Finish the Vision for Nusantara. If Not as a Capital, Then as Asia’s Next Great Innovation City.
By Jamie McIntyre
Chief Editor, Australian National Review
Founder, LUX Property Group
Indonesia has already achieved something extraordinary.
From what was once remote forest in East Kalimantan, a modern city has emerged with government buildings, world-class infrastructure, landscaped boulevards and one of the most ambitious urban planning projects of the 21st century.
The question is no longer whether Nusantara (IKN) can be built.
The question is what Indonesia chooses to make it.
Recent commentary has suggested President Prabowo Subianto may be slowing the transition of Indonesia’s capital from Jakarta to Nusantara. While President Prabowo has reaffirmed his commitment to continue developing Nusantara, he has indicated the formal declaration of Indonesia’s political capital will occur only once Parliament, the judiciary and supporting government institutions are fully operational, with 2028 remaining the target. (Presiden RI)
That approach is understandable.
Building a city is one thing.
Building a functioning national capital is another.
However, uncertainty also creates risk. Investors prefer certainty, and delaying major decisions for too long can discourage the very private investment needed to transform Nusantara from an impressive government precinct into one of Asia’s truly great cities.
A White Elephant or a Once-in-a-Century Opportunity?
Critics warn Nusantara could become a costly white elephant if Indonesia ultimately decides not to relocate the capital.
I disagree.
The city already exists.
The roads have been built.
The utilities have been installed.
The government precinct is taking shape.
The challenge now is not whether the investment should continue.
The challenge is ensuring Nusantara develops into a vibrant city where people genuinely want to live, work, invest, study and raise families.
Cities are not made successful by government offices alone.
They succeed because they create opportunity.
If Not Only a Capital, Then Make It Indonesia’s Innovation Capital
Even if Jakarta continues as Indonesia’s primary commercial and financial centre, Nusantara could become something arguably even more valuable.
Indonesia has an opportunity to create Asia’s newest innovation city.
A city designed from day one to attract:
* Technology companies
* Artificial intelligence research
* Universities
* Medical research institutions
* Clean energy businesses
* International entrepreneurs
* Start-up incubators
* Global investment funds
Rather than competing with Jakarta, Nusantara should complement it.
Jakarta can remain Indonesia’s commercial powerhouse.
Nusantara can become Indonesia’s city of the future.
Build a University City
Every great innovation hub begins with education.
Indonesia should invite leading universities from around the world to establish campuses in Nusantara.
Engineering.
Medicine.
Artificial Intelligence.
Robotics.
Environmental sciences.
Business.
Law.
A city filled with students becomes a city filled with ideas, businesses and long-term economic growth.
Become Asia’s Most Liveable Expat City
Indonesia also has an opportunity that few countries possess.
Nusantara could become one of Asia’s most attractive destinations for expatriates, retirees, entrepreneurs and digital professionals.
Imagine a city offering:
* Clean air
* Modern infrastructure
* Smart technology
* Affordable housing
* International schools
* World-class healthcare
* Fast approvals for investment
* Lifestyle and wellness precincts
* Green open spaces
* Excellent connectivity
Millions of Westerners are increasingly seeking alternatives to the rising cost of living, congestion and declining affordability in many of their home countries.
Indonesia is perfectly positioned to welcome that demand.
Tourism Should Be Part of the Vision
One of the biggest mistakes governments often make is building administrative cities that become quiet after business hours.
Nusantara should never become simply a government city.
It should become a destination.
Tourists should visit because of its architecture, museums, convention facilities, cultural attractions, parks, entertainment precincts and environmental leadership.
Indonesia has an opportunity to build one of the world’s first truly modern eco-capitals that is also a thriving tourism destination.
LUX Property Group’s Vision
Having visited Nusantara and studied its enormous long-term potential, LUX Property Group believes the city represents one of the most exciting development opportunities in Southeast Asia.
Our long-term concept proposal includes partnering with government and private investors to help deliver major tourism, lifestyle and investment infrastructure within Nusantara.
This vision includes:
* A world-class Convention and Exhibition Centre capable of hosting international conferences and events.
* An eco-resort and luxury hotel precinct showcasing Indonesian hospitality and sustainable design.
* A boutique international expatriate village integrated within the broader city, offering affordable apartments, villas, co-working spaces, wellness facilities and community amenities.
* International retirement and lifestyle communities.
* Affordable housing for professionals, entrepreneurs and young families.
* Wellness precincts incorporating parks, walking trails, fitness, health and recreation.
* International marketing campaigns positioning Nusantara as one of Asia’s premier destinations to live, invest, study and visit.
Rather than creating an isolated resort, our vision is to contribute to a vibrant mixed-use district that complements the wider master plan while helping attract permanent residents, tourists, international investors and businesses.
The Time for Private Investment Has Arrived
Governments build infrastructure.
Private enterprise builds cities.
Indonesia has already demonstrated remarkable leadership by commencing construction of Nusantara.
The next stage should be opening even greater opportunities for private developers, institutional investors, universities, healthcare providers, hotel operators and international businesses to participate in building vibrant communities around that public infrastructure.
Public and private sectors working together have created many of the world’s greatest cities.
Nusantara should be no different.
Indonesia’s Next Great Global City
Whether Nusantara ultimately becomes Indonesia’s official political capital in 2028 or evolves into something even broader, the opportunity remains extraordinary.
Rather than allowing the conversation to focus on whether the capital moves, Indonesia should ask a bigger question.
How can Nusantara become one of the world’s greatest new cities?
If Indonesia embraces innovation, education, tourism, technology and international investment alongside government, Nusantara could become not merely Indonesia’s new capital, but one of Asia’s defining success stories of the 21st century.
