The China Mail - Indonesia's delayed new capital risks 'white elephant' status

USD -
AED 3.672504
AFN 66.344071
ALL 83.58702
AMD 382.869053
ANG 1.789982
AOA 917.000367
ARS 1405.057166
AUD 1.540832
AWG 1.805
AZN 1.70397
BAM 1.691481
BBD 2.013336
BDT 122.007014
BGN 1.69079
BHD 0.374011
BIF 2943.839757
BMD 1
BND 1.3018
BOB 6.91701
BRL 5.332404
BSD 0.999615
BTN 88.59887
BWP 13.420625
BYN 3.406804
BYR 19600
BZD 2.010326
CAD 1.40485
CDF 2150.000362
CHF 0.80538
CLF 0.024066
CLP 944.120396
CNY 7.11935
CNH 7.12515
COP 3780
CRC 501.883251
CUC 1
CUP 26.5
CVE 95.363087
CZK 21.009504
DJF 177.720393
DKK 6.457204
DOP 64.223754
DZD 129.411663
EGP 46.950698
ERN 15
ETB 154.306137
EUR 0.86435
FJD 2.28425
FKP 0.759642
GBP 0.759936
GEL 2.70504
GGP 0.759642
GHS 10.930743
GIP 0.759642
GMD 73.000355
GNF 8677.076622
GTQ 7.659909
GYD 209.133877
HKD 7.78025
HNL 26.282902
HRK 6.514104
HTG 133.048509
HUF 332.660388
IDR 16685.5
ILS 3.26205
IMP 0.759642
INR 88.639504
IQD 1309.474904
IRR 42100.000352
ISK 126.580386
JEP 0.759642
JMD 160.439
JOD 0.70904
JPY 153.43504
KES 129.203801
KGS 87.450384
KHR 4023.264362
KMF 421.00035
KPW 899.998686
KRW 1455.990383
KWD 0.306904
KYD 0.83302
KZT 524.767675
LAK 21703.220673
LBP 89512.834262
LKR 304.684561
LRD 182.526573
LSL 17.315523
LTL 2.95274
LVL 0.60489
LYD 5.458091
MAD 9.265955
MDL 17.042585
MGA 4492.856402
MKD 53.206947
MMK 2099.464216
MNT 3582.836755
MOP 8.007472
MRU 39.595594
MUR 45.910378
MVR 15.405039
MWK 1733.369658
MXN 18.451604
MYR 4.176039
MZN 63.950377
NAD 17.315148
NGN 1436.000344
NIO 36.782862
NOK 10.160376
NPR 141.758018
NZD 1.776515
OMR 0.38142
PAB 0.999671
PEN 3.37342
PGK 4.220486
PHP 58.805504
PKR 282.656184
PLN 3.665615
PYG 7072.77311
QAR 3.643196
RON 4.398804
RSD 102.170373
RUB 80.869377
RWF 1452.42265
SAR 3.750713
SBD 8.230592
SCR 13.652393
SDG 600.503676
SEK 9.529804
SGD 1.301038
SHP 0.750259
SLE 23.203667
SLL 20969.499529
SOS 571.228422
SRD 38.599038
STD 20697.981008
STN 21.189281
SVC 8.746265
SYP 11056.879504
SZL 17.321588
THB 32.395038
TJS 9.226139
TMT 3.51
TND 2.954772
TOP 2.342104
TRY 42.209038
TTD 6.77604
TWD 30.981804
TZS 2455.000335
UAH 41.915651
UGX 3498.408635
UYU 39.809213
UZS 12055.19496
VES 228.194038
VND 26310
VUV 122.189231
WST 2.820904
XAF 567.301896
XAG 0.020684
XAU 0.00025
XCD 2.70255
XCG 1.801521
XDR 0.707015
XOF 567.306803
XPF 103.14423
YER 238.503589
ZAR 17.303704
ZMK 9001.203584
ZMW 22.615629
ZWL 321.999592
  • SCS

    0.0000

    15.76

    0%

  • BCC

    -0.0900

    70.64

    -0.13%

  • CMSD

    0.0900

    24.1

    +0.37%

  • RELX

    -1.1200

    42.27

    -2.65%

  • BCE

    0.0200

    23.19

    +0.09%

  • CMSC

    0.0700

    23.85

    +0.29%

  • NGG

    1.4600

    77.75

    +1.88%

  • RBGPF

    -0.7800

    75.22

    -1.04%

  • RIO

    0.0600

    69.33

    +0.09%

  • JRI

    -0.0100

    13.74

    -0.07%

  • RYCEF

    0.0800

    14.88

    +0.54%

  • GSK

    -0.4700

    46.63

    -1.01%

  • VOD

    0.2400

    11.58

    +2.07%

  • BTI

    0.3800

    54.59

    +0.7%

  • BP

    0.7600

    36.58

    +2.08%

  • AZN

    0.8100

    84.58

    +0.96%

Indonesia's delayed new capital risks 'white elephant' status
Indonesia's delayed new capital risks 'white elephant' status / Photo: © AFP

Indonesia's delayed new capital risks 'white elephant' status

A year after it was inaugurated, Indonesia'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.

Text size:

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.

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.

"The political will on IKN right now feels muted," said Dedi Dinarto, senior associate at public policy advisory firm Global Counsel, referring to the new capital's official name: Ibu Kota Nusantara.

President Prabowo Subianto "is clearly putting his chips on welfare instead".

Just over 1,000 city authority employees live in Nusantara, along with a few hundred more ministry workers and service and medical employees.

That's far short of Jakarta's 12 million residents, and the new city's goal of two million inhabitants by 2045.

Prabowo mentioned IKN just once in his first state of the nation speech, and has slashed funding for the project.

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's budget.

Significant foreign funding has also proved elusive despite overtures to allies in the Middle East and Asia.

"Prabowo feels that this is not his legacy. It's not his big push and he has more programmes that he wants to push," an official involved in the city's construction told AFP on condition of anonymity.

"I'm still 50-50 on it (being finished)," the official added, saying the budget cuts mean "a lot of things will not be completed".

- 'Your loss' -

The former president, known popularly as Jokowi, revived the long-proposed capital move when he won a second term in 2019.

But despite a rush to build, the city was not inaugurated as Indonesia's new capital on August 17 last year as expected.

"In Joko Widodo's time it was very fast-moving, now in Prabowo's time... it's not as fast," said Sofian Sibarani, the city's designer.

Just 800 of the planned 6,600 hectares of the core government area have been developed on or prepared for construction, he said.

Nusantara officials are undeterred, and tout the city as Indonesia's future power centre.

City authority head Basuki Hadimuljono told AFP that projects in a smaller executive area housing the palace and ministries in the government core were "already 97-98 percent" complete.

He claimed Prabowo wants to move in 2028 before the next presidential election, once the legislative and judicial areas are finished.

As president-elect, Prabowo said he wanted to "continue, if possible finish" the capital move, but since taking office he has yet to express any plans to sign the presidential decree needed to shift from Jakarta.

"It would be signed after the legislative and judicial areas are completed" in 2028, said Basuki.

"If you do not want to move here, or you have a doubt, it is your loss," he added.

Some government employees have expressed reservations about moving to an unfinished jungle city, located around 1,200 kilometres (745 miles) from Jakarta.

But city employee Helena, who like many Indonesians goes by one name, insisted her unfinished tower block offers "an amazing level of comfort".

"And the facilities we get are more than enough," the 45-year-old told AFP.

The city now has three functioning hospitals, coffee shops, a toll road to nearby Balikpapan city and an airport waiting for commercial flight approval.

A planned shopping mall and cinema remain unbuilt.

- 'Really cool' -

Outside the palace in the ceremonial plaza, dozens of tourists were taking in the promised new capital with gusto.

"I am happy and proud... IKN is really cool," said Ronald Telaumbanua, 38, who travelled from Sulawesi island.

The striking presidential palace, modelled after the mythical Garuda bird, is a draw for photographs, but the city's lush green centrepiece offers little else.

Businesses counting on a boom of arrivals say they are struggling.

"During the Jokowi era, there were many workers, and there were numerous visits. Almost every day was busy," said Abduh Rajab, 57, a snack seller near the developed city centre.

"My earnings have dropped significantly, by almost 60 percent. But I have to stay optimistic. I hope the construction will continue."

Dedi said former general Prabowo was likely to remain focused on flagship policies, such as offering free meals to children and pregnant women.

"That means IKN will not see breakneck development anytime soon," he said.

"Without strong momentum, it risks drifting into white elephant territory."

S.Davis--ThChM