Prabowo Subianto, Indonesia’s new President, has pledged 48.8 trillion rupiah ($2.99 billion) to develop the country’s new capital city, Nusantara, by 2029. This ambitious project aims to relocate the government to Nusantara by 2028, according to the project’s chief on Tuesday.
Former President Joko Widodo began construction on the $32-billion city in Borneo Island’s jungles in 2022. This legacy project was delayed due to the COVID-19 pandemic but has since regained momentum. Widodo envisioned Nusantara as a solution to Jakarta’s overpopulation and sinking issues, which are 1,200 kilometres (745 miles) away on Java Island. However, analysts believe that President Prabowo will not pursue the project with the same zeal as his predecessor, raising concerns about it becoming a “white elephant.”
According to data from the finance ministry, the government spent 75.8 trillion rupiah on initial developments from 2022 to 2024. The next phase will focus on housing and offices for the parliament and judiciary, as most executive branch offices have already been completed, according to Nusantara authority chief Basuki Hadimuljono.
To support the project, the government is also looking for private investment. Citadel Group, among others, will soon begin construction on hotels, housing, and office spaces worth 6.5 trillion rupiah.
