As Indonesia gears up for a new era under President-elect Prabowo Subianto, the nation is watching closely to see if the ambitious US$32 billion project to build a new capital city, Nusantara, will stay on track. Initiated by former President Joko Widodo, the capital relocation is intended to alleviate the pressures of overpopulation and infrastructure strain on Jakarta by moving the administrative center approximately 1,200 kilometers away to the lush forests of Borneo. With Prabowo now at the helm, his administration aims to accelerate key developments, ensuring that the nation’s governmental and parliamentary institutions are established in Nusantara within the next four years.
Prabowo has expressed a desire to host the inauguration of Indonesia’s next president in 2029 in Nusantara—a symbol of the project’s anticipated completion and a testament to Indonesia’s ambitious infrastructure development vision.
The idea of relocating Indonesia’s capital is not new. Jakarta, one of the world’s most densely populated cities, has long faced issues of overcrowding, traffic congestion, and environmental degradation. Built on a swamp, Jakarta is sinking at an alarming rate, with some studies suggesting it could be entirely submerged by 2050 if corrective action is not taken. Additionally, the city’s inadequate infrastructure and severe pollution have led to public health and logistical concerns.
Seeing an opportunity to relieve Jakarta of its immense burdens, President Widodo announced plans to relocate the capital to Borneo, a more stable and eco-friendly location. The area chosen for Nusantara was carefully selected not only for its geographical advantages but also for its proximity to other developing regions, such as East and South Kalimantan. Nusantara, located in the middle of Indonesia’s archipelago, was envisioned as a sustainable and innovative capital, incorporating green technology and modern infrastructure.
Since taking office, Prabowo Subianto has affirmed his commitment to the Nusantara project, describing it as the “capital of politics.” Forestry Minister Raja Juli Antoni reinforced Prabowo’s intentions in a social media post, emphasizing the new leader’s resolve to complete key government and parliamentary structures in the city within the next four years. He highlighted that Prabowo not only aims to continue the project but also intends to accelerate its progress to align with his long-term vision for Indonesia.
“We must complete the buildings for legislative and judiciary bodies,” Antoni stated, expressing Prabowo’s dedication to ensuring Nusantara becomes fully functional by the next presidential election. These statements come amidst skepticism about the project’s feasibility, especially given Prabowo’s focus on other costly social programs, such as his free-meal initiative aimed at addressing food insecurity. The commitment to Nusantara, however, signals a balancing act in Prabowo’s economic priorities as he seeks to satisfy campaign promises while pushing forward with infrastructure development.
Since construction began in 2022, the Nusantara project has seen notable milestones but has encountered significant challenges, particularly in securing foreign investment. Only a fraction of the total project cost—around 20%—is being covered by the Indonesian government, with the remainder expected to come from private investment. This funding model presents both opportunities and hurdles, as attracting the necessary investment has proven difficult amidst global economic uncertainties and concerns about environmental impacts.
In a positive development, Nusantara secured its first foreign investment in September 2024 from Chinese property giant Delonix Group, which pledged 500 billion rupiah (US$31.8 million) to build hotels and offices. This investment has been a small yet promising step, reflecting international interest in Indonesia’s capital relocation project. Other essential infrastructure, such as toll roads, housing, and an airport, is also underway, showcasing the government’s dedication to making the new city operational within the projected timeframe.
Prabowo’s administration envisions Nusantara as more than just an administrative hub; the city is to be a model of sustainable urban planning that aligns with Indonesia’s environmental goals. Plans for Nusantara include advanced waste management systems, renewable energy sources, and extensive green spaces. The administration is working closely with experts in environmental science, urban planning, and technology to develop a city that can stand as a benchmark for sustainable urban living in Southeast Asia.
Additionally, Prabowo views Nusantara as a symbol of unity, strategically positioned at the center of Indonesia’s diverse archipelago. He has advocated for integrating Nusantara into the country’s cultural and political narrative, emphasizing its role as a meeting point for different regions and ethnic groups. This vision also reflects Indonesia’s regional ambitions, positioning Nusantara as a hub for Southeast Asian diplomacy and a prominent player in regional affairs.
While the Nusantara project holds promise, it has faced criticism and skepticism on multiple fronts. Environmental concerns are paramount, given that the new capital is being constructed in a forested area on Borneo Island, home to rich biodiversity, including endangered species. Environmentalists have warned that large-scale construction in Borneo could endanger its ecosystem, affecting not only wildlife but also indigenous communities that rely on the forest for their livelihoods. The government has pledged to implement eco-friendly construction practices, yet the scale of the project raises questions about the potential environmental impact.
Additionally, there are concerns about funding and resource allocation. Critics argue that the US$32 billion project may divert essential resources from other pressing national issues, such as healthcare, education, and poverty alleviation. As Prabowo introduces new social initiatives like the free-meal program, analysts question whether Indonesia’s budget can realistically sustain both Nusantara’s development and these domestic welfare programs.
To keep Nusantara on track, Indonesia must attract more substantial foreign investment, and Prabowo’s administration is actively seeking partnerships with international developers and investors. The Chinese investment from Delonix Group has set a precedent, but much more is needed to cover the ambitious budget. Southeast Asian, Middle Eastern, and European investors have expressed interest, but concrete commitments remain sparse. The global economic climate, coupled with rising interest rates, presents a challenging environment for securing the capital required.
Prabowo’s administration has introduced several incentives to attract investors, including tax breaks, streamlined permitting processes, and guaranteed returns on specific infrastructure projects. However, international investors remain cautious, assessing the project’s long-term viability and the Indonesian government’s ability to manage such an extensive development amidst competing fiscal priorities.
Prabowo’s commitment to completing Nusantara also has significant political implications. The project represents a continuation of Joko Widodo’s legacy, and Prabowo’s dedication to its realization may be seen as a nod to his predecessor. By adopting Widodo’s vision, Prabowo appears to be promoting continuity in Indonesia’s governance, an approach that could solidify public confidence in the new administration.
Hosting the 2029 presidential inauguration in Nusantara would be a powerful symbol of Prabowo’s achievements, underscoring his administration’s capability to deliver on promises. This completion would also stand as a message to Indonesia’s neighbors and the global community, demonstrating the country’s capacity to undertake ambitious projects. For Prabowo, Nusantara is as much about legacy-building as it is about governance, marking his tenure with a monumental achievement.
The success of Nusantara hinges on Prabowo’s ability to navigate complex financial, environmental, and political challenges. His administration’s vision for the new capital includes establishing Nusantara as a hub for sustainability, innovation, and regional diplomacy. Yet, this vision will require not only efficient governance but also consistent financial backing and international cooperation.
As the clock ticks toward the next presidential inauguration in 2029, all eyes are on Prabowo to see if he can uphold his commitment to Nusantara. His balancing act—between fulfilling domestic campaign promises and advancing Widodo’s capital relocation project—will serve as a testament to his leadership abilities.
