Multi-level governance readiness and regional policy capacity in supporting Indonesia’s new capital development

Abstract

Introduction: The establishment of Nusantara Capital City (IKN) as Indonesia’s new capital requires effective multi-level governance in which supporting provinces play a decisive role in ensuring administrative, infrastructural, and economic alignment with national priorities. This study examines the governance readiness and regional policy capacity of West Sulawesi Province, Indonesia, as a supporting region for IKN development. Methods: A qualitative descriptive–analytical case study was conducted using semi-structured interviews with regional officials, sectoral agencies, legislators, academics, and civil society, complemented by policy documents and statistics. Interview data were coded and analyzed using NVivo 12 Plus with crosstab analysis, while InfraNodus network analysis mapped keyword co-occurrence to capture cross-level governance interactions beyond internal regional conditions. Results: The findings reveal uneven governance readiness across five dimensions. Environmental sustainability and social infrastructure emerge as the strongest areas, reflecting alignment with national sustainability agendas and expanding public services. Human resource indicators show moderate readiness, particularly in workforce participation and training. In contrast, institutional capacity, higher education availability, and intergovernmental fiscal transfers represent the most critical weaknesses, indicating persistent gaps in administrative robustness, knowledge infrastructure, and vertical fiscal coordination. Discussion: The study demonstrates that regional readiness for IKN is shaped not only by internal capacity but also by power asymmetries, regulatory dependence, and coordination frictions within multi-level governance. These findings contribute to governance and policy capacity scholarship by highlighting the centrality of cross-level relations in nationally driven megaprojects.