JAKARTA: Indonesian President Joko Widodo held on Monday his first Cabinet meeting in the country’s new capital of Nusantara, showing the latest progress in the ambitious $33 billion megaproject just a few months before the end of his presidency.
Widodo formally launched the capital relocation project in 2019, in what has been widely viewed as an attempt to seal his legacy before the end of his second and final term in October.
The outgoing leader has been working since late July from the city, located in the East Kalimantan province on Borneo island, which will hold its first Indonesian Independence Day celebration in less than a week.
“The Nusantara capital is a canvas that carves the future. Not all countries have the opportunity and the ability to build their capital city starting from zero,” Widodo told his ministers during a livestreamed meeting held in the massive, eagle-shaped new state palace.
“Nusantara is developed with a forest city concept, a city filled with greenery. It is not a concrete city or city of glass. It is also a smart city, supported by technology across all the city’s activities, and a livable city.”
Located more than 1,200 km away from the current capital Jakarta, the move to Nusantara was intended to ease the burden on the old center of government, which faces chronic traffic congestion, overpopulation, and heavy pollution and is one of the world’s fastest-sinking cities.
It is also aimed at redistributing wealth across Indonesia, as Java, the island on which Jakarta is located, is home to around 56 percent of the country’s population and nearly 60 percent of economic activity. The relocation process is scheduled for completion by 2045.
Widodo said investors have so far committed about IDR 56.2 trillion ($3.53 billion) in investments across various projects, including in transportation, housing and education. Last month, Widodo secured a deal to involve Dubai’s financial hub in developing Nusantara’s financial center.
The government expects to cover only 20 percent of the planned $33 billion budget, relying heavily on private sector investment to build key infrastructure and public facilities. The government launched new capital incentives earlier this month in a bid to lure investment, including granting land rights of up to 190 years.
As construction of Nusantara only began in mid-2022, buildings in the new city are still unfinished, with the new state palace about 88 percent complete while several ministry buildings are usable only on their lower levels.
The project, which is using land carved out of Borneo’s jungle, has also faced criticisms from environmentalists and indigenous communities, who have previously warned that the new capital was rushed without consultation.
Speaking to the press alongside Widodo, Indonesia’s President-Elect and Defense Minister Prabowo Subianto vowed to continue work on the new capital after he takes office on Oct. 20.
“Construction is ongoing and it should continue, and we should even speed it up, if possible,” Subianto said.
“We will definitely finish it, although the outline plan is dozens of years long, like other capital cities also took a very long time. We should not force it, but I am optimistic that in five years, I think, it will function very well.”
