Indonesia recently celebrated its 79th Independence Day with a ceremony at the new future capital, Nusantara. The capital was designed as a solution to relieve the pressure on the sinking Jakarta, which faces the threat of being submerged by 2050 due to uncontrolled groundwater extraction and rising sea levels. The new capital, spanning 2,600 square kilometers on Borneo island, aims to be a futuristic green city powered by renewable energy and employing smart waste management. However, the construction of Nusantara has fallen behind schedule, leading to a scaled-back inauguration ceremony with only 1,300 guests instead of the initially planned 8,000.
President Joko Widodo and his Cabinet attended the ceremony at the new Presidential Palace shaped like Garuda, the mythical eagle-winged protector. Widodo began working at the new presidential palace in late July, holding his first Cabinet meeting there recently. Despite the setbacks and delays, officials envision Nusantara as a modern and sustainable city abundant with forests and parks. The $33 billion budget for the project sees only 20% contributed by the government, with the rest coming from Indonesian companies and private sector investments. To attract investors, Widodo introduced incentives including land rights up to 190 years and significant tax benefits for Nusantara.
Construction of Nusantara began in mid-2022 and the city aims to be a hub for sustainability and innovation. With a population of about 275 million, Indonesia is Southeast Asia’s largest economy. Widodo, who has been in power for a decade, is set to leave office in October. The new capital project has faced criticism from environmentalists and Indigenous communities due to its potential environmental impact, threat to endangered species like orangutans, and displacement of Indigenous people who rely on the land for their livelihoods. Despite these challenges, the government remains focused on the development of Nusantara as a solution to Jakarta’s sinking issue.
The futuristic green city of Nusantara is envisioned to be powered by renewable energy sources and incorporate smart waste management practices. The project aims to create a sustainable and innovative urban center that can serve as a model for future development in Indonesia. With the government providing only a fraction of the budget, private sector investments play a crucial role in the construction and development of Nusantara. Investors have been attracted by the incentives introduced by Widodo, including long-term land rights and tax benefits, despite concerns raised by environmentalists and Indigenous communities.
Despite facing criticism and construction delays, the Indonesian government remains committed to the development of Nusantara as the new capital. The project holds the promise of relieving pressure on Jakarta and serving as a sustainable solution to the sinking issue facing the current capital. With President Widodo set to leave office in October, the completion of Nusantara remains a key aspect of his legacy. As construction continues and the city takes shape, the future of Indonesia’s new capital will be closely watched by both domestic and international observers.
