Indonesia’s new multi-billion pound capital has descended into chaos – just days before Independence Day celebrations.
Nusantara, which will become Indonesia’s future capital when completed, is due to be officially opened tomorrow as part of the August 17 celebrations, but the government has been forced to scale back its ambitious plans for the grand ceremony.
Experts have long expressed concerns about the new city, which has been under construction in the jungles of Borneo since 2022.
Nusantara is the pet project of outgoing President Joko Widodo, who wants to move the capital from Jakarta.
In the latest setback, Indonesia was forced to withdraw invitations from foreign diplomats and cut the guest list from 8,000 to 1,300 just days before the event.
President Widodo explained the embarrassing setback as follows: “There was no shelter or food available because the ecosystem here has yet to be built up.”
Earlier this month, Indonesia sent a letter to foreign diplomats withdrawing their invitation to the new capital.
The letter, seen by the FT, states: “The previous arrangements for the heads of mission of the capital Nusantara to attend the ceremony are no longer valid.”
There are growing doubts about the future of this pet project as President Widodo begins handing over power over Southeast Asia’s largest economy to his successor, Prabowo Subianto, in October.
Subianto’s team reportedly wanted to cut Nusantara’s bloated budget, which currently stands at £23 billion, to fund its promise to provide free meals to schoolchildren and pregnant women.
Nusantara’s development has been regularly marred by construction delays, and concerns grew in June following the surprise resignation of the project’s top management.
The new capital, more than 1,200 kilometers from Jakarta, has struggled to establish a reliable supply of drinking water and electricity. An airport, which was supposed to be ready by Independence Day, is still not finished.
President Widodo has stated that the Indonesian government will expand its activities to Nusantara in stages, with work expected to be fully completed by 2045.
Thousands of civil servants will begin relocating in September. One official told the FT that morale among those moving was low, citing a lack of infrastructure and the high cost of travelling to Jakarta.
The current capital of Indonesia, which is home to at least 11 million people, is the fastest sinking city in the world and also one of the most polluted.
Indonesia’s National Research and Innovation Agency also warned that around 25 percent of the city could be under water by 2050.
