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Prabowo’s administration may be under pressure in 2025 on Nusantara
The construction of the country's future new capital city Nusantara may be in jeopardy as the government has cut the allocation for the project in the 2025 state budget.
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A general view shows the presidential palace during the 79th Independence Day celebrations in the future capital city Nusantara, East Kalimantan, on Aug. 17, 2024. (AFP/Bay Ismoyo)
P
resident Prabowo Subianto has given an assurance about continuing the development of Indonesia’s future capital city of Nusantara in East Kalimantan, but doubts linger whether his administration has the capacity to finance and finish his predecessor’s multitrillion rupiah legacy project.
First announced in 2019, construction of the central government district only started in 2022 after the project was halted by the COVID-19 pandemic.
Then president Joko “Jokowi” Widodo spared no effort to complete as much of the project, which is estimated to cost around Rp 466 trillion (US$28 billion), as he could before he stepped down and was succeeded by Prabowo in October.
Since then, various officials have stated that the new president will continue developing Nusantara, dismissing concerns that the project would fall by the wayside under the new administration.
Forestry Minister Raja Juli Antoni, for example, said that Prabowo reaffirmed his commitment to the project to his ministers during a cabinet retreat in Magelang, Central Java, shortly after his inauguration.
Prabowo’s brother and businessman Hashim Djojohadikusumo, who also leads a government’s task force on housing, also said in October that his officials were working out a plan to complete basic infrastructure for Nusantara.
While yet to speak about or visit the new capital city, Prabowo is slated to go to Nusantara early this year to oversee the groundbreaking of several private sector projects in and around Nusantara worth Rp 6.5 trillion.
