NUSANTARA: Indonesia’s ambitious new capital city Nusantara stands largely empty one year after its inauguration, with construction slowed and budgets dramatically reduced.
The legacy project of former president Joko Widodo now faces uncertain prospects under new leadership focused on social welfare programmes rather than urban development.
President Prabowo Subianto mentioned the new capital only once in his first state of the nation address while cutting its funding from 43.4 trillion rupiah in 2024 to just 6.3 trillion rupiah for 2026.
Just over 1,000 city authority employees currently reside in Nusantara, far short of the target two million inhabitants planned by 2045.
Significant foreign investment has failed to materialise despite government overtures to Middle Eastern and Asian allies.
“The political will on IKN right now feels muted,“ said Dedi Dinarto, senior associate at public policy advisory firm Global Counsel.
“Prabowo is clearly putting his chips on welfare instead.”
An official involved in the city’s construction expressed doubts about completion given the budget constraints.
“I’m still 50-50 on it being finished,“ the anonymous official told AFP.
“A lot of things will not be completed.”
Former president Jokowi revived the long-proposed capital relocation project after winning his second term in 2019.
The city was not inaugurated as Indonesia’s new capital on August 17 last year as originally expected despite a construction rush.
“In Joko Widodo’s time it was very fast-moving, now in Prabowo’s time it’s not as fast,“ said Sofian Sibarani, the city’s designer.
Only 800 of the planned 6,600 hectares in the core government area have been developed or prepared for construction.
Nusantara officials remain optimistic about the city becoming Indonesia’s future power centre.
City authority head Basuki Hadimuljono claimed projects in the executive area housing the palace and ministries are 97-98% complete.
He stated Prabowo wants to move in 2028 before the next presidential election once legislative and judicial areas are finished.
“If you do not want to move here, or you have a doubt, it is your loss,“ Basuki added.
Some government employees have expressed reservations about relocating to an unfinished jungle city located 1,200 kilometres from Jakarta.
City employee Helena insisted her unfinished tower block offers amazing comfort with more than adequate facilities.
The city currently has three functioning hospitals, coffee shops, a toll road to nearby Balikpapan, and an airport awaiting commercial flight approval.
A planned shopping mall and cinema remain unbuilt despite earlier promises.
Dozens of tourists visit the ceremonial plaza outside the striking presidential palace modelled after the mythical Garuda bird.
“I am happy and proud IKN is really cool,“ said Ronald Telaumbanua, who travelled from Sulawesi island.
Local businesses counting on a construction boom report struggling with significantly reduced earnings.
“My earnings have dropped by almost 60%,“ said snack seller Abduh Rajab near the developed city centre.
“I have to stay optimistic and hope the construction will continue.”
Analysts suggest Prabowo will likely remain focused on flagship social policies rather than capital city development.
“That means IKN will not see breakneck development anytime soon,“ Dedi said.
“Without strong momentum, it risks drifting into white elephant territory.” – AFP
