“The development is still going on. Our commitment is the same as the previous administration. Just because the funding is blocked doesn't mean the project should be called off,” said Hasan Nasbi from the Presidential Communication Office.

The government has allocated IDR48.8 trillion (approximately $3.1 billion) from the state budget (APBN) for the Nusantara project through 2029. However, the Ministry of Finance has temporarily frozen the release of the funds.

The amount is intended to kick off Phase II of the capital’s development, covering the 2024–2029 period, which will focus on building up legislative and judicial infrastructure.

“We are tasked with completing the judicial and legislative areas along with their supporting infrastructure,” said Danis Hidayat Sumadilaga, acting deputy for facilities and infrastructure at the Nusantara Capital Authority (OIKN).

Deputy Minister of Public Works Diana Kusumastuti clarified that the frozen funds refer to the budget allocated for completing Phase I of the capital’s construction (2022–2024) and ongoing contracted projects. Starting in 2025, she added, responsibility for further development will fall under the Nusantara Capital Authority.

Under President Prabowo Subianto’s directive, funding for Phase II is expected to rely on public-private partnership (PPP) schemes worth IDR60.93 trillion (around $3.9 billion), along with private investment. As of February 2025, private investors had committed IDR6.49 trillion (around $417 million) to the project.

The Ministry of Investment and Downstreaming has also reaffirmed that ongoing investments in the Nusantara project will move forward. These include strategic projects such as irrigation systems, hospitality facilities, and educational institutions.

According to the Nusantara Capital Authority, more than 200 investment proposals had been submitted as of February 2025, with 40 companies signing cooperation agreements. The agency dismissed concerns that investor interest is fading due to uncertainty over the government's commitment.

“We are carefully screening incoming investment proposals. In total, we have received 500 letters of intent (LoIs), with 200 investors having expressed serious interest,” said Agung Wicaksono, Deputy for Funding and Investment at the Nusantara Capital Authority, on February 2.

On March 18, the authority announced that it had secured IDR2.42 trillion (about $155 million) in investment from five investors. Additional interest has also come from Thailand, following a visit to Nusantara by Thai Ambassador to Indonesia H.E. Prapan Disyatat on March 20.

OIKN spokesperson Troy Pantouw said Thailand is eyeing investment opportunities in the clean energy sector.

“There is strong interest in renewable energy, with some LoIs already submitted. These are now being assessed for technical and business feasibility,” he said.

Nusantara is designed to be a green city powered by renewable energy. The government has pledged to meet its energy needs through environmentally friendly sources.

As a “smart city,” Nusantara is also open to investments in information and communication technology. The government aims to deliver public services that are both efficient and innovative.

As of February 2025, OIKN has recorded a total of IDR59.65 trillion (around $3.8 billion) in private investment committed to support the development of the new capital.