Indonesian President Takes Steps to Address Concerns About New Capital | World News

Indonesian President in Damage Control Over New Capital

JAKARTA – Indonesia’s president is facing a 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.

President Joko Widodo’s decision to start working from an office in Nusantara, a massive construction site over 1,200km away from Jakarta, has not eased concerns about the project. Analysts believe that investor confidence has dropped due to unclear land status and lack of transparency in governance.

The president’s former deputy chief of staff, Yanuar Nugroho, expressed his concerns, stating that the resignations have worsened the situation, and the government’s attempt to cover it up is not helping. Despite the challenges, President Widodo broke ground on schools and office complexes in Nusantara, emphasizing the promise of foreign investment.

However, with zero foreign funding committed to the project years after its announcement, doubts linger about its feasibility. The president’s legacy project, aimed at alleviating the issues faced by Jakarta, such as traffic congestion and overpopulation, is facing numerous obstacles, including land disputes and water supply concerns.

As President Widodo’s term comes to an end in October, the future of the new capital city remains uncertain. President-elect Prabowo Subianto has his own ambitious project, a $29 billion nutrition program, which could compete for resources with the new capital city initiative.

Despite the challenges, the government is moving forward with plans to relocate civil servants to Nusantara starting in September. However, concerns about basic facilities and the risk of malaria in the region persist. Foreign investment interest is slowly picking up, but uncertainties remain about the project’s success.

In the midst of these challenges, the Indonesian government is working to address concerns and push forward with its vision for a modern, green smart city in Nusantara.