IKN Moratorium Proposal Draws Strong Opposition

4 hours ago 2

TEMPO.CO, Jakarta - As uncertainty clouds the status of Nusantara Capital City (IKN), Indonesia's NasDem Party proposes a temporary moratorium on the new capital city development.

Saan Mustopa, the NasDem Party deputy chair who submitted the proposal, urges the government to issue a moratorium on IKN if the project cannot yet be established as the new capital.

"The moratorium considers the nation's fiscal capabilities and priorities," said Saan in a press conference in Jakarta on Friday, July 18, 2025, adding that the moratorium can be established through a presidential decree.

If President Prabowo Subianto is unwilling to make IKN the national capital, Saan suggests that the government consider IKN as the capital of East Kalimantan. Subsequently, the government could re-establish Jakarta as the national capital and revise Law Number 3 of 2022 concerning the State Capital.

This measure could halt the chatter surrounding the IKN status as well as ensure the existing infrastructure does not become stalled or neglected. "Jakarta can be maintained as the national capital until all administrative preparations, infrastructure, and policies for civil servant rotations are thoroughly ready," he added.

Meanwhile, several factions in the House of Representatives' Commission II believe that a moratorium is ill-fitting. Commission II is the working partner of the IKN Authority, which oversees the prospective national capital in the East Kalimantan Province.

Deputy Chair of Commission II from the Golkar Faction, Zulfikar Arse Sadikin, unveils several reasons why a moratorium is unnecessary. First of all, he said, IKN is legally not the capital city of Indonesia until after the President issues a decree on the transfer of status.

Second, he said, numerous experts have said that the IKN construction will take at least 30 years before the city can function independently. "Thus, the relocation cannot be rushed," Zulfikar told Tempo on July 19, 2025.

Halting the construction of IKN also by no means stops the state funding for the project, as the infrastructures that have been built so far will require maintenance while a moratorium is in place.

Regardless, if President Prabowo Subianto going forward believes for some reason moving the capital city is unnecessary, it must be communicated with the parliament to establish the legal basis.

"Therefore, the relocation depends on the president as the head of state and the government," he said. "As long as there's no change, a moratorium is unneeded."

Meanwhile, Ahmad Irawan, a member of House Commission II from the Golkar Faction, is concerned that a moratorium would lead to the neglect of IKN. The East Kalimantan project has been decided politically as the new capital, and a moratorium proposal would be inappropriate as the government already established an agency—IKN Authority—to manage the new capital.

The Golkar Faction lawmaker said Prabowo holds the decision on IKN transfer, and the matter of moving the capital city hinges "entirely on the president's evaluation and confirmed readiness."

Mohamad Toha, another member of House Commission II from the PKB faction, said rescheduling the phases of IKN development is more feasible than halting the construction altogether. A moratorium, he said, must be interpreted as the delay in completion while the development continues, instead of the cessation of the construction process.

Meanwhile, the head of IKN Authority, Basuki Hadimuljono, ensured that the construction process for the capital city will continue, as Prabowo already confirmed the budget allocation.

The government has earmarked Rp48.8 trillion for the second phase of development, expected to last until 2028. President Prabowo has requested Basuki to focus on the construction of the legislative, judiciary, and supporting infrastructures.

Yayat Supriyatna, an urban planning lecturer at Trisakti University, previously said that maintaining IKN's will take hefty costs. This is because the government projected IKN to become a smart city with buildings adopting a green concept with environmentally friendly constructions.

Aside from buildings, toll roads also bear large maintenance costs, as there are no operators or toll road companies managing them. "Maintenance funding will surge as the IKN development area expands," he stated on July 10, 2025.

Meanwhile, Bright Institute Economist Awalil Rizky said that an annual budget of Rp300 billion is not excessive. However, he cautioned that the current issue with IKN is not the size of the maintenance budget, but rather the certainty of utilizing these assets.

"Maintenance cost becomes wasteful if the utilization is not optimal," said Rizky.