Jakarta (VNA) – Indonesia’s government said the development of its future capital Nusantara in East Kalimantan is designed to deliver tangible economic benefits to local communities, amid public scrutiny over the massive relocation project.
Basuki Hadimuljono, head of the Nusantara Capital Authority (OIKN), stressed that the authority is committed to ensuring projects in the new capital serve residents living within the designated development area, which covers parts of North Penajam Paser and Kutai Kartanegara Districts.
Hadimuljono said the government aims to position local communities as key drivers of regional growth rather than mere bystanders in the transformation process. It is also important to assist coastal communities in maximising their potential by increasing the added value of their products.
He cited fish farming activities in Sembilang Village in Kutai Kartanegara, noting the coastal settlement has the potential to evolve into a tourism village as development progresses.
The authority plans to support the village in becoming a center for food commodities derived from local resources such as milkfish, shrimp and seaweed, under the broader Nusantara Economic Superhub (NES) framework.
Local businesses producing amplang crackers made from shrimp and crab are also part of this ecosystem,” he added.
The strategy, he said, is aimed at diversifying Nusantara’s economy through downstream processing, encouraging residents to move beyond raw materials and produce higher-value goods.
He said food fortification could include protein powder made from milkfish and shrimp, while seaweed-based products could serve as ingredients for cosmetics and pharmaceuticals.
Alongside community initiatives, the government confirmed that healthcare infrastructure in Nusantara has been ready since February 15 to support the relocation of 16 ministries and state agencies, expected to begin in 2026.
According to OIKN’s Director of Basic Services Suwito, four hospitals have been built in the core government area, with three already operational: a central general hospital under the Ministry of Health, Nusantara Mayapada Hospital and Nusantara Hermina Hospital.
With a planned ratio of two to three hospital beds per 1,000 residents and full integration into the national health insurance system, the new capital aims to provide a safe and well-equipped living environment.
The capital relocation project, initiated by former President Joko Widodo and now being continued by President Prabowo Subianto, is entering its second phase focused on infrastructure for legislative and judicial bodies through 2027. The government targets officially declaring Nusantara the country’s political centre by 2028./.
