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Government wants to change law to future-proof Nusantara project
The government has submitted a proposed revision to the Capital City Law to the House of Representatives, in which it proposes preventing the next president from ditching the project.
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Cranes stand on June 8, 2023, as construction continues on the administrative center of Nusantara, the country’s new capital in East Kalimantan. Public Works and Housing Minister Basuki Hadimuljono said on Aug. 16 that progress on the State Capital City (IKN) Nusantara development project was 30 percent complete. (Antara/Fakhri Hermansyah)
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he government has submitted a revision to the Capital City Law to the House of Representatives, in which it proposes preventing the next president from ditching the project.
The construction of a new capital city, which would span nearly 260,000 hectares within the jungles of East Kalimantan is President Joko "Jokowi" Widodo's flagship project.
Indonesia is set to officially declare the city, called Nusantara or IKN, as its new capital in the first half of 2024, replacing the current overcrowded and rapidly sinking capital of Jakarta.
However, with an estimated overall cost of Rp 466 trillion (US$30 billion) and the COVID-19 pandemic delaying progress, some investors have expressed concern that development may lose momentum after Jokowi ends his second and final five-year term in office in 2024. The capital's success hinges on private sector involvement, with only 20 percent of costs shouldered by the state.
National Development Planning Agency (Bappenas) Head Suharso Monoarfa said that revising the current law was crucial to give investors a guarantee that the construction of the new capital city would continue as planned until 2045.
"Without this revision, there's a risk that the construction of the new capital city could be halted or stopped at any point," he said during a hearing with the House's Commission II overseeing home affairs on Monday.
Aside from ensuring project continuity, the government also seeks to strengthen the role of the IKN Authority through the proposed revision.
