Indonesian leader initiates activities in new capital amid ongoing construction and limited amenities

Outgoing President of Indonesia, Joko Widodo, has commenced his work at the new presidential palace in the country’s forthcoming capital, where he plans to spend the remaining months of his presidency. The new capital, named Nusantara, is situated in East Kalimantan province on the island of Borneo. In preparation for the Independence Day celebrations next month, authorities are rushing to complete essential infrastructure projects in the future capital city.

Widodo’s initial task on Monday was a meeting with the executives of the Nusantara development authority. The president also has scheduled meetings with provincial leaders. To facilitate the transition, the presidential secretariat is arranging all the necessary furniture for the presidential office, such as tables, chairs, and lighting. Widodo confirmed that the supply of water, electricity, and internet is functioning well.

The construction of the new “Garuda Presidential Palace” is ongoing, and Widodo expressed optimism that it will be ready to host the country’s independence day ceremony on August 17. However, challenges have arisen with the relocation plans, including slow construction progress and missed deadlines, leading to the recent resignations of key officials overseeing the Nusantara Capital Authority.

The project to build the new capital is estimated to cost $33 billion, with the state budget covering only 20% of the expenses. Widodo’s administration is relying on private sector investments to develop critical infrastructure and public facilities. In an effort to attract investment, Widodo recently signed a presidential regulation granting investors rights, including land rights for up to 190 years in the future capital.

Despite progress, there are uncertainties regarding the official relocation of the capital city, as Widodo has yet to issue the decree. Consequently, Jakarta remains the capital until the formal decree is signed. Widodo has hinted that President-elect Prabowo Subianto may issue the decree after his inauguration on October 20.

The delay in finalizing the decree has sparked queries about the location of the presidential inauguration, which under the Indonesian constitution, must occur in the nation’s capital. The lack of investors in the megaproject also poses challenges for Subianto once he assumes office, as he has pledged to continue Widodo’s key initiatives, including the new capital city. Jakarta’s status as the nation’s capital was revoked by Widodo in mid-2022 due to issues such as pollution, congestion, earthquakes, and sinking land.