23-6-2023 (JAKARTA) The Indonesian government’s plan to hire foreign supervisors to oversee the construction of its new planned capital, Nusantara, has faced backlash and criticism. The move, aimed at accelerating the project’s completion, has raised concerns about the expertise and capability of local professionals.
Coordinating Minister for Maritime Affairs and Investments, Luhut Pandjaitan, stated in parliament earlier this month that the employment of foreign workers was necessary to ensure the timely completion of the new capital by August next year. President Joko Widodo has set a target to inaugurate Nusantara as the country’s new capital on Independence Day in 2024.
Pandjaitan emphasized the importance of maintaining high-quality construction standards, stating, “We must be able to celebrate there on the 17th (of August). But the quality of the work is key.” He further added that using foreign supervisors was crucial to achieving the desired level of quality and avoiding subpar outcomes, such as a completed presidential palace with poor workmanship.
Criticism of Pandjaitan’s remarks emerged, including from a politician of the ruling party, Indonesian Democratic Party of Struggle (PDI-P), to which President Widodo belongs. Nusyirwan Soejono, representing PDI-P’s industry, employment, and social security unit, argued that the professionalism of Indonesians should not be undermined. Soejono emphasized that Indonesians possess the capability to build and supervise major infrastructure projects, including roads and buildings. He highlighted the security aspects of critical structures like the presidential palace, suggesting that Indonesians are better suited to handle such responsibilities.
The construction of Nusantara in Kalimantan is expected to occur in multiple stages. The first phase, which involves building the palace, several ministries, and essential infrastructure like roads and housing, is scheduled for completion in 2024, coinciding with President Widodo’s final year in office. The final stage, linking the new capital with surrounding cities such as Balikpapan and Samarinda, is planned to be finished in time for Indonesia’s centennial in 2045.
On June 12, Pandjaitan defended his stance, emphasizing that the quality of workers in Indonesia is commendable, but they can benefit from the expertise of capable foreign professionals. He encouraged a learning mindset, suggesting that local workers can improve their skills and knowledge with the guidance of experienced experts. President Widodo supported the idea of utilizing foreign supervisors to ensure quality, stating that if a limited number of individuals could effectively oversee and control the construction to achieve high standards, there was no reason to oppose it.
However, concerns have been raised regarding the escalating costs associated with hiring foreign supervisors for the new capital. Mohammad Faisal, the executive director of the Center of Reform on Economics (CORE) Indonesia, pointed out that the government should carefully consider expenses, especially as the project relies on the state budget. Faisal highlighted the potential disparity in costs between employing foreigners with international standards and utilizing local experts with lower salaries. Given budget constraints, he questioned whether the higher cost of foreign hires would be justified, even if it resulted in superior quality.
Trubus Rohadiansyah, a political policy expert from Trisakti University, echoed the sentiment, emphasizing the importance of tapping into the expertise of local workers. He argued that, considering the high unemployment rate, using the state budget to employ local professionals would be more favorable. Rohadiansyah also expressed concerns about potential conflicts arising between foreign supervisors and local workers who have been involved in the construction process thus far. Social jealousy and discontent among locals could emerge due to the presence of foreigners overseeing their work.
The intention to hire foreign supervisors has also drawn opposition from the indigenous communities residing near the new capital. Mr. Sibukdin, the head of the local tribe Paser Balik in Penajam Pasar Utara regency, expressed his opposition to the plan, citing concerns over potential problems and exclusion of Indonesians from supervisory roles. He warned of possible protests if foreigners were appointed instead of capable Indonesian professionals.
Amidst discussions about expertise and security, some experts have argued that the sensitive nature of certain buildings could be a cause for concern if foreign supervisors gain direct knowledge of their layouts. Ichsan Malik, a lecturer in peaceful conflict resolution at the Indonesian Defence University, suggested that while Indonesians should handle the construction of critical structures like the state palace, foreigners could be involved in supervisory roles. Stringent non-disclosure agreements have been implemented for all workers involved in the project, addressing potential security issues, according to Achmad Jaka Santos Adiwijaya, secretary of the new capital Nusantara.
