Indonesia's new capital, Nusantara, seems to appear out of nowhere. It is accessed by a multi-lane highway which leads directly to the palace topped with a winged eagle. All this under the rays of the equatorial sun, which shines brightly in Indonesia. Unfortunately, the rows of futuristic new buildings near the palace are empty. You will be able to meet several gardeners and curious tourists nearby.
Under President Prabowo Subianto, who took office in October 2024, public funding for the new investment project has more than halved, from £2 billion in 2024 to £700 million in 2025. £300 million has been allocated for next year, a third of what had been requested. Private investment also fell more than £1 billion below target.
Prabowo, who has not yet visited the city as president, also quietly demoted Nusantar to "political capital". This happened in May, although the decision was not made public until September. In 2024, the head and deputy of the body overseeing the construction of the capital resign.
To Nusantara Currently, around 2,000 people live there. government officials and 8,000 construction workerswhich is far from the target of 1.2 million in 2030. Apartment buildings, ministerial buildings, hospitals, roads, water systems and an airport have been built, but much of the city is still under construction.
Some researchers claim that the idea itself, and later the project, even before construction begins, are associated with the risk of a "ghost town".
"A new capital is not a priority for Prabowo," Herdiansyah Hamzah, a constitutional law researcher at Mulawarman University in eastern Borneo, told Indonesian media.
Despite the delays and strange moods, those involved in the project officially known as Ibu Kota Nusantara (IKN) remain optimistic.
"The president told me, 'I am committed to continuing and finishing even faster,'" Basuki Hadimuljono, head of the Nusantara Capital Authority (OIKN), said in an interview with local journalists from his office overlooking the new capital. Reports of a slowdown in construction and a lack of political will are "false", he adds. "There are funds, there is political commitment," they say. "Why should we doubt it?"
He adds that the funds were "transferred and not deleted".
Small businesses that have thrived around the new capital thanks to the influx of workers say trade will collapse this yearwhile environmentalists warn of a potential ecological disaster in a stretch of rainforest home to rare and endangered species.
"When Jok was president, rented rooms would be criminal" in front of the Indonesian media Devi Asnawati, the ktra runs a confinement and accommodation store. "Now my income is decreasing for post-power."
Stall owner Syarariyah agrees, describing a boom followed by a bust. "At first, our laundry room was full every day," I said. "But when the workers returned home, everything stopped. Many friends closed their businesses. People fear the place will become a ghost town."
Mimo that the community wants Nusantara to succeedmajor of hope, e Mys she spells the news in the same culture and tourism in this regiment.
Where did the idea of moving the capital of Indonesia come from? Climate change has an impact on Dakarta. The city of around ten million people faces many problems, such as air pollution and flooding. Part of the city also lies below sea level, which could have disastrous long-term consequences.
Therefore the authorities decided to develop a plan to establish a new capital of the countrycreating a city from scratch. This will be Nusantara, whose name means "Indonesian archipelago". It is located on the island of Borneo, more than 1,000 km from Dakarta, which is still the capital of Indonesia. Work will begin in August 2022 and the city will receive the status of "political capital" of the country from 2028.
It was in that year that the country's main institutions, including the State Palace and those corresponding to the legislative and judicial powers, were established here. However, the completion of all works is planned only for 2045.