{"id":141092,"date":"2025-09-08T06:37:13","date_gmt":"2025-09-08T06:37:13","guid":{"rendered":"https:\/\/www.newsbeep.com\/us\/141092\/"},"modified":"2025-09-08T06:37:13","modified_gmt":"2025-09-08T06:37:13","slug":"indonesias-delayed-new-capital-risks-white-elephant-status","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us\/141092\/","title":{"rendered":"Indonesia&#8217;s delayed new capital risks &#8216;white elephant&#8217; status"},"content":{"rendered":"<p class=\"mb-4 text-lg md:leading-8 break-words\">A year after it was inaugurated, Indonesia&#8217;s would-be new capital Nusantara attracts tourists and construction workers, but most of its architecturally arresting presidential palace and freshly built avenues sit silent.<\/p>\n<p class=\"mb-4 text-lg md:leading-8 break-words\">The legacy project of former president Joko Widodo is battling a slashed budget, slowed construction and a deficit of interest from a new leader focused on social mega-projects.<\/p>\n<p class=\"mb-4 text-lg md:leading-8 break-words\">That has raised questions about whether the city, carved out of the jungle to replace crowded and rapidly sinking Jakarta, will ever see its promised potential.<\/p>\n<p class=\"mb-4 text-lg md:leading-8 break-words\">&#8220;The political will on IKN right now feels muted,&#8221; said Dedi Dinarto, senior associate at public policy advisory firm Global Counsel, referring to the new capital&#8217;s official name: Ibu Kota Nusantara.<\/p>\n<p class=\"mb-4 text-lg md:leading-8 break-words\">President Prabowo Subianto &#8220;is clearly putting his chips on welfare instead&#8221;.<\/p>\n<p class=\"mb-4 text-lg md:leading-8 break-words\">Just over 1,000 city authority employees live in Nusantara, along with a few hundred more ministry workers and service and medical employees.<\/p>\n<p class=\"mb-4 text-lg md:leading-8 break-words\">That&#8217;s far short of Jakarta&#8217;s 12 million residents, and the new city&#8217;s goal of two million inhabitants by 2045.<\/p>\n<p class=\"mb-4 text-lg md:leading-8 break-words\">Prabowo mentioned IKN just once in his first state of the nation speech, and has slashed funding for the project.<\/p>\n<p class=\"mb-4 text-lg md:leading-8 break-words\">Official budgets show a cut from 43.4 trillion rupiah ($2.66 billion) in 2024 to just 6.3 trillion rupiah in 2026. The authority had requested more than 21 trillion rupiah for 2026&#8217;s budget.<\/p>\n<p class=\"mb-4 text-lg md:leading-8 break-words\">Significant foreign funding has also proved elusive despite overtures to allies in the Middle East and Asia.<\/p>\n<p class=\"mb-4 text-lg md:leading-8 break-words\">&#8220;Prabowo feels that this is not his legacy. It&#8217;s not his big push and he has more programmes that he wants to push,&#8221; an official involved in the city&#8217;s construction told AFP on condition of anonymity.<\/p>\n<p class=\"mb-4 text-lg md:leading-8 break-words\">&#8220;I&#8217;m still 50-50 on it (being finished),&#8221; the official added, saying the budget cuts mean &#8220;a lot of things will not be completed&#8221;.<\/p>\n<p class=\"mb-4 text-lg md:leading-8 break-words\">&#8211; &#8216;Your loss&#8217; &#8211;<\/p>\n<p class=\"mb-4 text-lg md:leading-8 break-words\">The former president, known popularly as Jokowi, revived the long-proposed capital move when he won a second term in 2019.<\/p>\n<p class=\"mb-4 text-lg md:leading-8 break-words\">But despite a rush to build, the city was not inaugurated as Indonesia&#8217;s new capital on August 17 last year as expected.<\/p>\n<p class=\"mb-4 text-lg md:leading-8 break-words\">&#8220;In Joko Widodo&#8217;s time it was very fast-moving, now in Prabowo&#8217;s time&#8230; it&#8217;s not as fast,&#8221; said Sofian Sibarani, the city&#8217;s designer.<\/p>\n<p class=\"mb-4 text-lg md:leading-8 break-words\">Just 800 of the planned 6,600 hectares of the core government area have been developed on or prepared for construction, he said.<\/p>\n<p class=\"mb-4 text-lg md:leading-8 break-words\">Nusantara officials are undeterred, and tout the city as Indonesia&#8217;s future power centre.<\/p>\n<p class=\"mb-4 text-lg md:leading-8 break-words\">City authority head Basuki Hadimuljono told AFP that projects in a smaller executive area housing the palace and ministries in the government core were &#8220;already 97-98 percent&#8221; complete.<\/p>\n<p class=\"mb-4 text-lg md:leading-8 break-words\">He claimed Prabowo wants to move in 2028\u00a0before the next presidential election, once the legislative and judicial areas are finished.<\/p>\n<p class=\"mb-4 text-lg md:leading-8 break-words\">As president-elect, Prabowo said he wanted to &#8220;continue, if possible finish&#8221; the capital move, but since taking office he has yet to express any plans to sign the presidential decree needed to shift from Jakarta.<\/p>\n<p class=\"mb-4 text-lg md:leading-8 break-words\">&#8220;It would be signed after the legislative and judicial areas are completed&#8221; in 2028, said Basuki.<\/p>\n<p class=\"mb-4 text-lg md:leading-8 break-words\">&#8220;If you do not want to move here, or you have a doubt, it is your loss,&#8221; he added.<\/p>\n<p class=\"mb-4 text-lg md:leading-8 break-words\">Some government employees have expressed reservations about moving to an unfinished jungle city, located around 1,200 kilometres (745 miles) from Jakarta.<\/p>\n<p class=\"mb-4 text-lg md:leading-8 break-words\">But city employee Helena, who like many Indonesians goes by one name, insisted her unfinished tower block offers &#8220;an amazing level of comfort&#8221;.<\/p>\n<p class=\"mb-4 text-lg md:leading-8 break-words\">&#8220;And the facilities we get are more than enough,&#8221; the 45-year-old told AFP.<\/p>\n<p class=\"mb-4 text-lg md:leading-8 break-words\">The city now has three functioning hospitals, coffee shops, a toll road to nearby Balikpapan city and an airport waiting for commercial flight approval.<\/p>\n<p class=\"mb-4 text-lg md:leading-8 break-words\">A planned shopping mall and cinema remain unbuilt.<\/p>\n<p class=\"mb-4 text-lg md:leading-8 break-words\">&#8211; &#8216;Really cool&#8217; &#8211;<\/p>\n<p class=\"mb-4 text-lg md:leading-8 break-words\">Outside the palace in the ceremonial plaza, dozens of tourists were taking in the promised new capital with gusto.<\/p>\n<p class=\"mb-4 text-lg md:leading-8 break-words\">&#8220;I am happy and proud&#8230; IKN is really cool,&#8221; said Ronald Telaumbanua, 38, who travelled from Sulawesi island.<\/p>\n<p class=\"mb-4 text-lg md:leading-8 break-words\">The striking presidential palace, modelled after the mythical Garuda bird, is a draw for photographs, but the city&#8217;s lush green centrepiece offers little else.<\/p>\n<p class=\"mb-4 text-lg md:leading-8 break-words\">Businesses counting on a boom of arrivals say they are struggling.<\/p>\n<p class=\"mb-4 text-lg md:leading-8 break-words\">&#8220;During the Jokowi era, there were many workers, and there were numerous visits. Almost every day was busy,&#8221; said Abduh Rajab, 57, a snack seller near the developed city centre.<\/p>\n<p class=\"mb-4 text-lg md:leading-8 break-words\">&#8220;My earnings have dropped significantly, by almost 60 percent. But I have to stay optimistic. I hope the construction will continue.&#8221;<\/p>\n<p class=\"mb-4 text-lg md:leading-8 break-words\">Dedi said former general Prabowo was likely to remain focused on flagship policies, such as offering free meals to children and pregnant women.<\/p>\n<p class=\"mb-4 text-lg md:leading-8 break-words\">&#8220;That means IKN will not see breakneck development anytime soon,&#8221; he said.<\/p>\n<p class=\"mb-4 text-lg md:leading-8 break-words\">&#8220;Without strong momentum, it risks drifting into white elephant territory.&#8221;<\/p>\n<p class=\"mb-4 text-lg md:leading-8 break-words\">sty-jfx\/sah\/rsc\/jm<\/p>\n","protected":false},"excerpt":{"rendered":"A year after it was inaugurated, Indonesia&#8217;s would-be new capital Nusantara attracts tourists and construction workers, but most&hellip;\n","protected":false},"author":2,"featured_media":141093,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[36],"tags":[28,87848,87845,101,87849,3996,87846,40530,87847,87850],"class_list":{"0":"post-141092","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-business","9":"tag-city-authority","10":"tag-construction-workers","11":"tag-economy","12":"tag-global-counsel","13":"tag-indonesia","14":"tag-nusantara","15":"tag-prabowo-subianto","16":"tag-president-joko-widodo","17":"tag-presidential-palace"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/141092","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=141092"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/141092\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/141093"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=141092"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=141092"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=141092"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}