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

USD -
AED 3.672504
AFN 68.219237
ALL 82.857752
AMD 380.976754
ANG 1.789783
AOA 917.000367
ARS 1363.781872
AUD 1.526718
AWG 1.8025
AZN 1.70397
BAM 1.668415
BBD 2.008787
BDT 121.381958
BGN 1.67037
BHD 0.376029
BIF 2975.730433
BMD 1
BND 1.283259
BOB 6.891875
BRL 5.415204
BSD 0.997398
BTN 88.031563
BWP 13.409256
BYN 3.370186
BYR 19600
BZD 2.005886
CAD 1.38335
CDF 2875.000362
CHF 0.79812
CLF 0.024592
CLP 969.61399
CNY 7.13285
CNH 7.125945
COP 3977.479207
CRC 505.352954
CUC 1
CUP 26.5
CVE 94.0627
CZK 20.809504
DJF 177.607166
DKK 6.371104
DOP 63.075283
DZD 129.747921
EGP 48.536575
ERN 15
ETB 142.670164
EUR 0.853104
FJD 2.252804
FKP 0.73851
GBP 0.740302
GEL 2.703861
GGP 0.73851
GHS 12.068245
GIP 0.73851
GMD 71.503851
GNF 8644.913628
GTQ 7.649392
GYD 208.667093
HKD 7.796104
HNL 26.130945
HRK 6.429804
HTG 130.356153
HUF 335.310388
IDR 16378.7
ILS 3.346245
IMP 0.73851
INR 88.186504
IQD 1306.632544
IRR 42075.000352
ISK 122.150386
JEP 0.73851
JMD 159.590531
JOD 0.70904
JPY 147.40504
KES 129.059501
KGS 87.450384
KHR 3999.14694
KMF 420.503794
KPW 900.033647
KRW 1386.503789
KWD 0.30552
KYD 0.831137
KZT 536.003412
LAK 21638.72894
LBP 89314.139475
LKR 301.155897
LRD 199.974408
LSL 17.631478
LTL 2.95274
LVL 0.60489
LYD 5.414374
MAD 9.064278
MDL 16.740456
MGA 4435.913841
MKD 52.497334
MMK 2099.502314
MNT 3596.223105
MOP 8.015782
MRU 39.984645
MUR 46.070378
MVR 15.410378
MWK 1729.409256
MXN 18.715204
MYR 4.223804
MZN 63.903729
NAD 17.631478
NGN 1530.000344
NIO 36.707187
NOK 10.049304
NPR 140.850501
NZD 1.696929
OMR 0.384159
PAB 0.997398
PEN 3.513158
PGK 4.162935
PHP 56.703704
PKR 283.017616
PLN 3.626762
PYG 7188.739603
QAR 3.645383
RON 4.332204
RSD 99.961612
RUB 81.18038
RWF 1444.65771
SAR 3.750234
SBD 8.223823
SCR 14.776967
SDG 600.503676
SEK 9.395304
SGD 1.285204
SHP 0.785843
SLE 23.250371
SLL 20969.49797
SOS 570.014929
SRD 38.877504
STD 20697.981008
STN 20.899979
SVC 8.726807
SYP 13001.997909
SZL 17.625933
THB 32.080369
TJS 9.425123
TMT 3.51
TND 2.916784
TOP 2.342104
TRY 41.202504
TTD 6.769034
TWD 30.523204
TZS 2498.443165
UAH 41.112647
UGX 3508.637236
UYU 39.957347
UZS 12404.350608
VES 152.63057
VND 26400
VUV 120.279164
WST 2.775516
XAF 559.570911
XAG 0.024381
XAU 0.000279
XCD 2.70255
XCG 1.797483
XDR 0.695927
XOF 559.570911
XPF 101.735978
YER 240.103589
ZAR 17.58868
ZMK 9001.203584
ZMW 23.812327
ZWL 321.999592
  • RBGPF

    3.9500

    75.43

    +5.24%

  • NGG

    1.1800

    70.1

    +1.68%

  • SCS

    0.0900

    17.14

    +0.53%

  • CMSD

    0.5000

    24.46

    +2.04%

  • GSK

    0.8900

    40.5

    +2.2%

  • AZN

    -0.0800

    81.7

    -0.1%

  • RELX

    0.2500

    47.05

    +0.53%

  • CMSC

    0.2900

    24.23

    +1.2%

  • RIO

    1.5100

    63.97

    +2.36%

  • RYCEF

    0.0200

    14.61

    +0.14%

  • VOD

    0.0600

    11.81

    +0.51%

  • BTI

    0.5900

    56.02

    +1.05%

  • BP

    -0.3700

    33.93

    -1.09%

  • BCE

    0.2500

    24.72

    +1.01%

  • JRI

    0.0500

    13.62

    +0.37%

  • BCC

    2.7900

    90.02

    +3.1%

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