Effectiveness and Challenges in Governing Indonesia’s Nusantara Capital

Abstract

This study aims to analyze the effectiveness of the implementation of Law Number 3 of 2022 concerning the State Capital  in establishing efficient and adaptive central government governance, as well as to identify the main challenges in its institutional implementation. Using a normative juridical approach, the study finds that the establishment of the Nusantara Capital Authority as the primary executing institution has been a strategic step in developing a new governance framework that is digitally-based, integrated, and sustainable. Nevertheless, its effectiveness faces several institutional challenges, including inter-agency coordination, bureaucratic capacity, and fiscal sustainability. The urgency of addressing these challenges lies in the need to strengthen accountability, institutional stability, and public participation to ensure that governance reforms in the align with the national development vision. This research highlights the critical importance of harmonizing institutional functions and optimizing governance mechanisms to achieve long-term sustainable development objectives, while maintaining efficiency and adaptability in managing the new capital city