IKN and the Sinking of The Dayak’s Dream: A Capital Built on Someone Else’s Future

Who took away the Dayak’s Dream?

By Apen Panlelugen

The ambitious project known as Ibu Kota Nusantara, or IKN, was once heralded as Indonesia’s grand leap into a new political era. Yet on the ground in Borneo, it has come to symbolize something entirely different: the quiet drowning of The Dayak’s Dream.

For many Dayak communities, the new capital is not a promise of progress but a warning sign that they may once again be pushed aside, forced to dream on top of dreams built by others, particularly transmigration programs and now the IKN mega-project. The Dayak people, Indigenous to Borneo and long-standing guardians of its forested cosmos, watch as another national vision unfolds without them.

Their alarm is rooted in history. Every major state-induced transformation in Borneo has come at a cost to Indigenous land, identity, and political voice. Today, as IKN enters a period of deep uncertainty, the Dayak fear that the consequences will fall hardest on them.

A National Capital Losing Its Shine

IKN, located in East Kalimantan, is facing mounting challenges: financial bottlenecks, infrastructure delays, investor hesitation, and political ambiguity.

The most striking blow came on 18 July 2025, when Saan Mustopa, Deputy Chair of the NasDem Party, publicly suggested that IKN might be more suitable as the capital of East Kalimantan Province rather than as Indonesia’s national capital.

“We see many things that must still be addressed before IKN can function fully as the state capital,” Saan said, noting that even a Presidential Decree governing IKN’s operational framework has yet to be issued.

His statement reflects a growing sentiment in Jakarta and beyond: despite political declarations, the new capital is far from ready.

Funding Uncertainty and Political Hesitation

At the core of the controversy is money.

The 2025 state budget allocation for IKN remains frozen, leaving construction progress stagnant. “There is no budget, so how can there be progress?” said Minister of Public Works and Housing, Dody Hanggodo, after a February 2025 hearing with Parliament’s Commission V.

President Prabowo Subianto previously approved 48.8 trillion rupiah for the second-phase development of IKN through 2029. However, the blocked funds underscore a deeper issue: the state is struggling to balance national priorities during economic pressure.

Critics argue that the total IKN project value, around 466 trillion rupiah, risks draining public resources. Anthony Budiawan of Political Economy and Policy Studies (PEPS) says the mega-project is contributing to weakened national economic resilience. He has repeatedly pushed for a moratorium until Indonesia’s financial condition improves.

Investor confidence remains shaky. By April 2023, 167 letters of intent had been submitted, but only five investors received permission to build civil-service housing. Although the government claims only 20 percent of the budget would come from the state, private investment remains far below expectations.

Infrastructure is another major obstacle. Even basic requirements such as water, electricity, and transportation are far from ready. Flooding in buffer areas such as Longkali highlights unresolved environmental risks.

Government Optimism, Public Skepticism

Despite these concerns, the Indonesian government remains outwardly optimistic. Coordinating Minister for Infrastructure and Regional Development, Agus Harimurti Yudhoyono, insists that IKN will advance according to President Prabowo’s vision for 2028. Current efforts focus on completing the Core Government Zone, including the presidential palace and legislative facilities.

Nevertheless, the ongoing debate, from budget freezes to political recalibrations, signals deeper uncertainty. Members of the ruling coalition acknowledge that the NasDem proposal deserves thoughtful consideration.

The vision of creating a “Global City for All” is increasingly fragile. Without clear policies and sustainable funding, IKN risks becoming a monument to political ambition rather than national progress.

Where the Dayak Stand: Watching Their Future Slip Away

For the Dayak, the issue is not merely about relocating a capital. It concerns their survival as a people and their role as custodians of Borneo. Many fear becoming spectators in their own homeland, overshadowed by developers, migrants, and political agendas.

IKN was planned without meaningful Dayak consultation. Their ancestral relationship to the land, culturally, spiritually, and legally, was overlooked in the national narrative. Meanwhile, transmigration continues reshaping demographics and political power in East Kalimantan.

If Borneo is the Dayak cosmic space, then IKN risks becoming another chapter in a long story of dispossession.

The Dayak Must Build Their Own Dream

This period of national uncertainty is a critical turning point. If the Indonesian state continues sidelining them, the Dayak cannot depend on outside visions for their future. They must articulate and build their own long-term dream: a vision stretching across generations rather than political terms.

What should the Dayak imagine for
10 years from now?
20 years from now?
50 years from now?
100 years from now?

A future where they remain masters of their land?
A future built on ecological stewardship, cultural sovereignty, economic autonomy, and political representation?
A future where Borneo is not carved up by oligarchic interests or reduced to an investor playground?

The Dayak must remain vigilant. Borneo is their inherited cosmos, a living geography passed down by their ancestors. Regardless of IKN’s fate, the risk of further marginalization remains very real.

A Capital in Doubt, A People at Risk

As Indonesia debates whether IKN will ever truly replace Jakarta, the Dayak face a deeper question:

Will the new capital become another instrument of displacement, or will it spark a movement for Indigenous self-determination?

The political future of IKN remains uncertain. The Dayak’s need to protect their land, rights, and aspirations, however, has never been clearer.