Nusantara risks ‘white elephant’ status


A year after it was inaugurated, Indonesia’s would-be new capital Nusantara attracts tourists and construction workers, but most of its architecturally arresting presidential palace and freshly built avenues sit silent.

The legacy project of former president Joko “Jokowi” Widodo is battling a slashed budget, slowed construction and a deficit of interest from a new leader focused on social mega-projects.

That has raised questions about whether the city, carved out of the jungle to replace crowded and rapidly sinking Jakarta, will ever see its promised potential.

“The political will on IKN right now feels muted,” said Dedi Dinarto, senior associate at public policy advisory firm Global Counsel, referring to the new capi­­tal’s official name: Ibu Kota Nusantara.

President Prabowo Subianto “is clearly putting his chips on welfare instead”.

Just over 1,000 city authority employees live in Nusantara, along with a few hundred more ministry workers and service and medical employees.

That’s far short of Jakarta’s 12 million residents, and the new city’s goal of two million inhabi­tants by 2045.

Prabowo mentioned IKN just once in his first state of the nation speech, and has slashed funding for the project.

Official budgets show a cut from 43.4 trillion rupiah in 2024 to just 6.3 trillion rupiah in 2026.

Significant foreign funding has also proved elusive despite overtures to allies in the Middle East and Asia.

“Prabowo feels that this is not his legacy. It’s not his big push and he has more programmes that he wants to push,” said an official involved in the city’s construction on condition of anonymity.

“I’m still 50-50 on it (being fi­nished),” the official added, sa­­ying the budget cuts mean “a lot of things will not be completed”. — AFP

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