Indonesia’s President is swiftly working to quell concerns among investors and officials regarding his $32 billion vision for a new capital in Borneo, a move sparked by the sudden departure of two key figures involved in the project, casting shadows on its fate.
President Joko Widodo plans to begin operating from an office in Nusantara, amidst the vast construction sprawl over 1,200km away from Jakarta, in efforts to quash scepticism surrounding this ambitious venture. However, analysts still need to be convinced of its efficacy.
“There seems to be a dip in investor confidence. The indecision and the ‘wait-and-see’ attitude stem from not only the ambiguous status of the land but also the opaque governance surrounding the new capital,” observed Yanuar Nugroho, a former advisor to the President.
“The resignations have only deepened concerns… rather than clarifying the situation, the government appears to be obfuscating,” he commented, pointing out the President’s attempt to manage the situation. Following the resignations of two pivotal project leaders, the President’s immediate visit to Nusantara to initiate the construction of schools and offices while assuring foreign investments may not suffice.
Despite unveiling this primary project years ago to mitigate Jakarta’s density, pollution, and infrastructural challenges, foreign investments have yet to be secured thus far.
A presidential spokesperson directed inquiries about Nusantara’s viability back to President Widodo’s assurances of progressing as planned.
Incoming President Prabowo Subianto has not publicly committed to the relocation or the pace of Nusantara’s development despite his “continuity” promise and history as a former commander with a significant $29 billion nutrition program aimed at reducing stunting. This has led to speculation on its priority in his agenda amidst financial concerns about supporting this initiative and his nutritional agenda.