Questions swirl about Indonesia new capital city project after resignations
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New capital Nusantara, seen being built in Kalimantan in this 2023 photo, is Indonesian President Joko Widodo’s signature project.
PHOTO: REUTERS
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JAKARTA – The head and deputy head of the body overseeing Indonesia’s planned new capital have unexpectedly resigned, raising questions about the US$32 billion (S$43 billion) project.
With Jakarta, the current capital of 10 million, overcrowded and plagued by massive traffic jams as well as chronic flooding and sinking land, Indonesia is building a new capital, called Nusantara,
“(President Joko Widodo) has appointed the public works and housing minister and deputy agrarian minister as the acting head and deputy head,” Indonesian State Secretariat Minister Pratikno said on June 3.
He said the appointments would speed up construction and the resignations had long been discussed.
Mr Bambang Susantono, a former official at the Asian Development Bank who was heading the project, and his deputy Dhony Rahajoe, an architect and former real estate developer, did not immediately respond to requests for comment.
The Indonesian government has been racing to build the infrastructure required for the relocation of the first batch of 12,000 civil servants this September.
But the plan has been twice delayed and the resignations come amid a lack of private funding for Mr Widodo’s signature project
“These resignations will make people question the project,” said Mr Arya Fernandes, from Indonesia’s Centre for Strategic and International Studies. “The question is how to convince investors that there is no problem.”
One of the stumbling blocks has been about the status of land ownership in the new capital site, Indonesian Public Works Minister Basuki Hadimuljono said during a news conference on June 3.
“We will soon decide on the status of the land,” he said. “Whether we sell it, rent it or if there will be cooperation between government and companies. We will speed it up so that investors won’t have any doubts.”
Mr Widodo, popularly known as Jokowi, plans to visit Nusantara on June 4 to inaugurate several projects, including schools, while celebrations for Indonesia’s Independence Day are planned there on Aug 17.
He will step down in October after serving the maximum two terms in office. Indonesian President-elect Prabowo Subianto, who is closely aligned with Mr Widodo, has pledged to continue developing the new capital. REUTERS
