Governance and Management Challenges in Indonesia's Nusantara Capital City (IKN) Project: A Critical Review and Strategic Recommendations

National Capital Relocation Nusantara Indonesia Regional Development Equity

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January 31, 2026

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This paper offers a critical review?of governance and management issues on Indonesia’s Nusantara Capital City (IKN), an essential national development program. Applying a qualitative case study method, recent data?and reports are scrutinized to draw attention to themes such as leadership instability, a lack of government agency coordination, budget constraints, opacity in the use of funds, social strife over land acquisition and the questionable sustainability of development across Indonesia. The study shows?the constraints of the institutional capacity of the IKN Authority and how political changes affect project continuity. The findings inform policy suggestions to improve governance, inter-agency collaboration,?transparency and inclusive stakeholder engagements. This study adds to the existing literature by highlighting the challenges faced in implementing large government mega-projects within a developing country?context, and provides practical advice for policy-makers with an aim to achieving IKN development sustainability.