Indonesia Delays Capital Move to Nusantara

On August 17, Indonesian President Joko Widodo marked the country's Independence Day in Nusantara, the proposed future capital, while Vice President Ma'ruf Amin officiated from Jakarta. The long-anticipated transfer of the capital has been postponed indefinitely due to ongoing delays in the project, which began in 2021 and was formalized in 2022. Although the new presidential palace, designed to resemble the Garuda, has been completed, essential infrastructure, including accommodations and an airport for VIPs, remains unfinished. Nusantara, located in the geographic center of Indonesia on Borneo, aims to address the significant population and development disparities across the nation of 288 million. The city is envisioned as a zero-carbon-emission capital by 2045, built on largely uninhabited land previously used for paper-tree concessions and coal mining. The ambitious project draws comparisons to other planned capitals like Brasilia and Astana, with hopes of fostering a more balanced national development. President Widodo, known for his focus on infrastructure, has projected that 80% of the estimated €29 billion funding for Nusantara would come from private investments. However, while some local companies have shown interest, foreign investment has been slow to materialize. The Indonesian government has already allocated 42 trillion rupiah (€2.44 billion) for the current financial year, matching expenditures from the previous year. During a recent Council of Ministers meeting in Nusantara, Widodo emphasized the capital's potential as a "canvas" for the future, but also announced a delay in relocating the first 10,000 civil servants, originally scheduled for September.