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2024 election may worsen IKN’s appeal for investors
Non-committal statements from a presidential candidate and legal uncertainties over the project may pose threats to the new capital's continuation after President Joko "Jokowi" Widodo's term ends, analysts have concurred.
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Construction continues on the Core Governmental Area (KIPP) of the new capital city Nusantara in North Penajam Paser regency, East Kalimantan on Dec. 7, 2023. Public Works and Housing Minister Basuki Hadimuljono recently reported that the first phase of the construction for the new capital city had reached 60 percent. (Antara/M Risyal Hidayat)
Doubt has been cast over the future of President Joko “Jokowi” Widodo’s upcoming legacy of the new capital city Nusantara, as a statement from a presidential candidate on the lack of interest in continuing its development might deter investors from throwing money at the project.
Foreign investors, the already elusive key to the project’s realization, are likely to be deterred from throwing their hats in the ring in the foreseeable future, as next year’s election may create unpredictability for Nusantara’s future.
The House of Representatives has future-proofed the new capital development by passing in October a revision to the Nusantara Capital City (IKN) Law that prevents future presidents from ditching the project.
But former Jakarta governor Anies Baswedan, who is running for the presidency with National Awakening Party (PKB) chair Muhaimin Iskandar, repeatedly stated that the pair would not prioritize Nusantara’s development if they get elected.
The latest occasion of his stating his opposition to the new capital city was during a panel held by the Foreign Policy Community of Indonesia (FPCI) in Jakarta on Dec. 2, during which he said the money earmarked for Nusantara could be used to solve other “urgent” issues, such as improving the education or health system.
“[The benefits of] building health facilities will be felt by all Indonesian people,” Anies said, “while the IKN construction can only benefit the state apparatus working for the state. What should happen is the state works for the people.”
Muhaimin previously said in late October that the latest revision of the IKN Law might give the future Indonesian president no choice other than to continue the project. But Anies asserted that the new capital project could be delayed, “if it’s important [but] not urgent.”
