10-7-2024 (JAKARTA) In a surprising turn of events, Indonesian President Joko Widodo has indicated that the ambitious plan to relocate the nation’s capital this year may face delays. The revelation, reported by Bloomberg Technoz on Tuesday, marks a significant shift in the timeline for one of Southeast Asia’s most audacious infrastructure projects.
President Widodo, widely known as Jokowi, suggested that the issuance of a presidential decree designating Nusantara as the new capital city could be postponed beyond October. The decision, he emphasised, would hinge on the progress of developments on the ground.
“We don’t want to force something that is not ready,” Jokowi stated, underscoring a cautious approach to the monumental undertaking. “We need to assess the progress on the ground,” he added, signalling a potential recalibration of the project’s timeline.
This latest development is likely to fuel growing scepticism surrounding the viability of the new capital project. The venture, which involves constructing a city from scratch in the heart of Borneo’s jungle, has thus far failed to attract foreign investment despite various government incentives.
To date, the project has only secured 49.6 trillion rupiah (approximately $3 billion) in total investments, all sourced from domestic companies and state-owned institutions. This figure falls significantly short of the required funding, with the city’s authority acknowledging that domestic funding can only cover a mere 20% of the total costs.
Jokowi’s recent comments stand in stark contrast to his optimistic stance just a month ago when he expressed intentions to commence working from the new capital as early as July. The shift in tone comes in the wake of the resignation of both the head and deputy of the agency overseeing the development, further clouding the project’s future.
The Nusantara project, conceived as a solution to ease congestion in the current capital Jakarta, is a colossal undertaking divided into five construction phases. The government’s vision extends to 2045, by which time it hopes to have relocated some 1.9 million people to the new capital.
