November 3, 2025
JAKARTA – The Nusantara Capital City (IKN) Authority has reported that illegal farming and mining have damaged over 13,000 hectares of forest area in the country’s new capital, Nusantara, in East Kalimantan fueling growing concerns about the city’s long-term viability.
Insp. Gen. Edgar Diponegoro, head of a special task force formed to tackle illegal activities in Nusantara, said that 4,236 ha of land had been converted into illegal coal mines, while 8,338 ha had been damaged by unauthorized plantations.
“This level of destruction is a serious warning for the IKN Authority, especially as we work to preserve the forest functions in the area,” he said on Wednesday.
Nusantara was designed as a green city, with only a quarter of its 252,000-ha site planned for development and the remainder preserved as green space.
On Sept. 28, authorities seized seven trucks carrying illegally mined coal near the Samboja-Balikpapan Tollgate, one of the main access points to the new capital.
The following day, the team discovered stockpiles of coal and white sand from illegal mining in the protected Bukit Tengkorak forest area, in Sepaku subistrict. At the location, authorities found 2,000–3,000 tonnes of coal, along with several piles of white sand ready for transport.
The site of the illegal mine is located only 30 kilometers from the new presidential palace in Nusantara.
Further investigations by authorities uncovered massive forest encroachment for plantations, the construction of illegal homes and unauthorized kiosks in the Bukit Soeharto Grand Forest Park conservation area.
The East Kalimantan Police are currently investigating the illegal activities.
To prevent further forest encroachment in Nusantara, Insp. Gen. Edgar Diponegoro said authorities planned to set up 10 guard posts at strategic locations across the city. The posts will be staffed by IKN Authority personnel and assisted by local community security volunteers funded by the government.
“These guard posts will be equipped with 24-hour CCTV cameras to monitor real-time activity and are expected to become operational by 2026,” Edgar said.
He added that the IKN Authority would install warning signs in vulnerable areas and physically close off zones where development is no longer permitted. It will also collaborate with the Forestry Ministry to rehabilitate forests damaged by illegal mining and plantations, with work expected to begin by the end of this year.
The recent findings have fueled growing concern over the long-term viability of Nusantara. Satellite images taken by the National Research and Innovation Agency (BRIN) have shown that the new capital has very limited water resources to sustain future activities.
A BRIN researcher has warned that the loss of vegetation and forest cover, which helps retain rainwater, could worsen the area’s water scarcity. They added that if Nusantara continued to face a lack of water due to climate and environmental changes, it could result in fewer rainy days, reduced rainfall intensity, and even iron contamination in water.
IKN Authority head Basuki Hadimuljono, however, gave an assurance that the water supply for Nusantara remains secure and sufficient, noting that the government has built the Sepaku Semoi Dam to guarantee long-term availability.
“The dam has a storage capacity of 16 million cubic meters and can provide up to 2,500 liters of raw water per second,” Basuki said on Wednesday.
Aside from environmental issues, concerns have also emerged over the economic viability of completing the megaproject.
President Prabowo Subianto has approved a budget of Rp 48.8 trillion (US$2.9 billion) for the continued development of the new capital, Nusantara, for the 2025–2029 period. The allocation represents a decrease from the Rp 75 trillion earmarked for the city’s development between 2022 and 2024 under the previous administration, while private investment has also fallen short of expectations.
The reduced funding has fueled worries that the new capital could eventually turn into a ghost city.
President Prabowo has insisted that the government remains committed to developing the future capital despite competing priorities, including his administration’s flagship free nutritious meals program.