Indonesia’s half-built dream capital Nusantara stumbles towards a partial opening

The US$33 billion city is far from finished, with its future under a new president in doubt amid scaled back Independence Day celebrations

Reading Time:5 minutes

Workers build a wall in Nusantara on August 10 with the future presidential palace under construction in the background. Photo: AFP

Published: 9:00am, 17 Aug 2024Updated: 2:45pm, 18 Aug 2024

Controversy has surrounded Indonesia’s new capital city ever since the US$33 billion gambit to reshape the nation’s identity was first unveiled five years ago.

This Saturday, outgoing President Joko Widodo will offer a preview of his grand plan to exorcise the “colonial shadows” he says haunt the current capital when Nusantara – as the new seat of power is known – hosts the country’s first Independence Day celebration outside sinking, polluted Jakarta.

The event promises all the trappings of a modern, tech-savvy city, including luxury SUVs ferrying VVIP guests to newly constructed presidential palaces, all paid for with 87 billion rupiah (US$5.4 million) in taxpayer funds. Around 1,300 guests are expected to attend – down from the 8,000 that were initially planned – hosted in presidential suites at the newly-built Swissotel for 20 million rupiah (US$1,200) per night.

Widodo has brushed off criticism that the event is a waste of money, calling the expense for a celebration split between two cities more than 1,200km apart “normal”. Vice-President Maruf Amin and his successor Gibran Rakabuming Raka – Widodo’s son – will lead an Independence Day ceremony in Jakarta attended by foreign diplomats, as Widodo and incoming president Prabowo Subianto head the scaled-back festivities in Nusantara.

But the pomp masks deeper challenges. Construction of the new city remains painfully slow, with Widodo admitting it could take decades to complete. And the decision to relocate the capital has also drawn criticism, with some questioning whether the remote location in East Kalimantan will truly help bridge Indonesia’s stark economic divides.

The island of Java, where the current capital is located, contributed more than half of Indonesia’s US$1.3 trillion gross domestic product last year.

12:48

A fresh start: Why is Indonesia building a new capital?