Indonesian President Joko Widodo has officially begun working from the presidential palace in Nusantara, the nation's ambitious new administrative capital. This move marks a significant milestone in the $33 billion project, which has faced numerous delays since its announcement in 2019.
Located in East Kalimantan on Borneo, Nusantara is intended to replace the congested and sinking Jakarta as Indonesia’s capital. However, the project is substantially behind schedule, with many of its buildings still incomplete. The palace, which is approximately 90% finished, is still undergoing final touches and furnishing.
In his first remarks after spending a night at the new palace, Widodo, often known as Jokowi, acknowledged the project's challenges. “I couldn’t sleep well … maybe because it was my first time,” he confessed to reporters. Despite the ongoing work, Jokowi praised the palace's infrastructure, noting that water, electricity, and internet services are functioning properly.
The city is scheduled to host its inaugural Indonesia Independence Day celebration on August 17, which is also anticipated to be the official date for the capital’s transfer from Jakarta. However, the timeline for completing the entire city has been extended, with full completion not expected until 2045.
Recent developments have raised concerns about the project’s progress. Last month, the head of the Nusantara Capital Authority and his deputy resigned amid mounting pressure and construction delays. Plans to relocate 12,000 civil servants, initially set for July, have also been postponed due to slow infrastructure development.
Widodo’s administration has heavily relied on private investment to fund the capital project, with the state covering only 20% of the total cost. To attract investors, Widodo recently signed a presidential regulation granting long-term land rights in Nusantara.
Despite these efforts, the new city’s infrastructure remains incomplete. The government is working to secure additional power supply, with a current solar power plant providing only 10 megawatts of the required capacity. A nearby reservoir is expected to meet the city’s water needs.
Questions linger about the official relocation of the capital. Jokowi has not yet issued the formal decree needed to finalize the move, leading to speculation that President-elect Prabowo Subianto might handle this task following his inauguration on October 20.
The delay in the formal decree has raised concerns about the location of Prabowo’s inauguration, as Indonesian constitutional requirements dictate that the swearing-in must occur in the nation’s capital.
The ambitious Nusantara project has faced criticism for its slow pace, with experts like Sulfikar Amir of Nanyang Technological University questioning the project's rushed execution and its impact on financing and planning.
As Widodo embarks on this historic phase of his presidency, the future of Nusantara remains closely watched, with both supporters and skeptics awaiting further developments in this monumental undertaking.
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