28-10-2024 (JAKARTA) Indonesia’s president-elect Prabowo Subianto has committed to an ambitious four-year timeline for completing crucial government and parliamentary infrastructure in Nusantara, the nation’s US$32 billion new capital city project, marking a significant continuation of his predecessor’s vision.
Forestry Minister Raja Juli Antoni revealed that Subianto envisions the 2029 presidential inauguration taking place in the new capital, suggesting a dramatic acceleration of the relocation project initiated by former President Joko Widodo. The new capital, situated in Borneo’s jungle terrain, lies approximately 1,200km from Jakarta, which faces increasing challenges from overcrowding and subsidence.
The minister’s announcement, made via social media on Saturday, aims to dispel mounting speculation about the incoming administration’s commitment to the mammoth project. Questions had arisen regarding the feasibility of simultaneously funding both Nusantara’s development and Subianto’s flagship election promise of a nationwide free-meal programme.
“Nusantara represents the political heart of our nation’s future,” Raja Juli quoted the president-elect as saying. “The next four years must see the completion of not only government facilities but also legislative and judiciary infrastructure.”
While significant progress has been made, with the presidential palace and some official residences already completed, the project faces considerable financial challenges. The government’s funding model stipulates that only 20 percent of the total budget should come from state coffers, necessitating substantial private investment.
A breakthrough came last month with the project’s first foreign investment, as Chinese property developer Delonix Group committed 500 billion rupiah (US$31.80 million) towards hotel and office developments. However, this represents only a fraction of the required external funding.
