Indonesian President Takes Action to Address Concerns Regarding New Capital | Global News

Indonesian President Joko Widodo is facing a major challenge as he rushes to reassure investors and bureaucrats about his ambitious $32 billion new capital city project in a malaria-prone area of Borneo. The recent resignations of two officials overseeing the plan have raised fresh doubts about its future, putting the president in damage control mode.

Despite announcing that he will start working from an office in Nusantara, the construction site for the new capital, analysts believe that this move is unlikely to restore investor confidence. The unclear land status and lack of transparency in governance have already put doubts in the minds of investors.

The president’s legacy project, aimed at relieving the burden on Jakarta, has faced numerous challenges, including zero foreign funding commitments and concerns about land issues, water supplies, and tropical diseases like malaria. With Jokowi set to leave office in October, the future of the new capital remains uncertain.

Moreover, the incoming president-elect, Prabowo Subianto, has his own ambitious project, a $29 billion nutrition program, which could compete for resources with the new capital. While Prabowo has pledged to continue developing Nusantara, doubts remain about the state budget’s capacity to fund both projects.

As Indonesia prepares to move thousands of civil servants to Nusantara, concerns about basic facilities and reluctance among workers to relocate persist. The government has promised essential amenities will be ready, but some civil servants view the move as a sacrifice.

With foreign investment interest picking up and concerns about malaria transmission in the region, the future of Indonesia’s new capital city remains uncertain. As the country navigates these challenges, the fate of this ambitious project hangs in the balance.