Indonesian leader begins work in new capital despite construction and lack of facilities

FADLAN SYAM and NINIEK KARMINI, Associated Press

17 minutes ago

Indonesian President Joko Widodo (center) speaks to media in the new capital Nusantara in Penajam Paser Utara, East Kalimantan, Indonesia, Monday, July 29, 2024. Widodo began work Monday on the new presidential palace in his country’s ambitious new capital, Nusantara, where he plans to spend the final months of his presidency. (AP Photo/ Fadlan Syam)

PENAJAM PASER UTARA, Indonesia (AP) — Outgoing Indonesian President Joko Widodo began work Monday on the new presidential palace in his country’s ambitious new capital, where he plans to spend the final months of his presidency.

“Today I started receiving officials for meetings here, in the president’s office,” Widodo told reporters at the new presidential palace, as authorities rush to complete other key infrastructure projects in the future capital Nusantara before Independence Day celebrations next month. The capital, also known as IKN, is in East Kalimantan province on the island of Borneo.

Widodo said his first agenda item on Monday was a meeting with executives of the Nusantara Development Authority. He is also scheduled to meet with provincial leaders.

To facilitate the move, the Presidential Secretariat is preparing all the necessary furniture for the presidential office, including tables, chairs and lighting, while the provision of clean water, electricity and internet “is all going well,” Widodo said.

“We came here to see the latest progress of the IKN, especially the construction of the palace. I see that everything is still in progress,” Widodo said, adding that there are thousands of workers rushing to complete the infrastructure projects, and that “I don’t want our presence to hinder the progress of its development.”

He is optimistic that the new “Garuda Presidential Palace” will serve as a backdrop for the country’s Independence Day ceremony on August 17.

There is just one month left before Nusantara hosts its first-ever Indonesian Independence Day celebrations, which are also expected to mark the official handover of the capital from Jakarta. However, the plan for the relocation has been thrown into doubt due to slow construction progress and missed deadlines, which led to the resignation of the head of the Nusantara Capital Authority and his deputy last month.

Most of the buildings in the new city are still unfinished. The new state palace is 88% complete and only the lower floors of several ministry buildings are still usable.

The project to build the new capital is estimated to cost $33 billion, of which the state budget would cover only 20%. Widodo’s government has relied heavily on private sector investment to build key infrastructure and public facilities, as the state budget will mainly cover the construction of basic infrastructure, buildings and utilities within the government’s “core area.”

In a bid to attract investors, Widodo earlier this month signed a presidential decree giving investors certain rights, including land rights of up to 190 years in the future capital.

Minister of Public Works and Housing Basuki Hadimuljono, who also serves as acting head of the IKN Authority, said the government is still working to secure another 40 megawatts for the city, but the current capacity of 10 megawatts produced by a solar power plant is located in Nusantara. A nearby reservoir provides “more than enough to meet the needs” for clean drinking water in the new city, he said.

Despite the progress made, questions remain about when the new capital will be officially moved, as Widodo has yet to issue the official decree. Until the decree is signed, Jakarta will remain the country’s capital.

Widodo has indicated that the decree could be issued by President-elect Prabowo Subianto, who will be inaugurated on October 20.

The delay in formalizing the decree has raised questions about the location of the presidential inauguration, which is required by the Indonesian constitution to take place in the country’s capital.

The lack of investors in the megaproject also puts Subianto in a difficult position once he is sworn in. Subianto has pledged continuity as his campaign platform during the presidential election and has promised to continue Widodo’s groundbreaking projects, including the IKN.

Construction of the new city began in mid-2022 after Widodo announced that Jakarta would no longer have the status of capital. The metropolis struggles with pollution and congestion, is prone to earthquakes and is sinking rapidly.

____

Karmini reported from Jakarta, Indonesia