Future of Indonesia’s new capital Nusantara uncertain after top officials quit 2 months before inauguration

President Widodo says construction on Nusantara will continue despite the resignations, but questions over project’s economic viability remain, analysts note

It is also unclear how much effort president-elect Prabowo will devote to Nusantara, seen as a ‘politically driven’ project to secure Widodo’s legacy, they add

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Construction of Indonesia’s new capital city Nusantara in Sepaku, East Kalimantan, in January. Photo: Anadolu via Getty Images

Published: 6:30pm, 4 Jun 2024Updated: 4:09pm, 13 Aug 2024

Fresh uncertainties have been cast over Indonesia’s US$30 billion capital relocation project after two top officials overseeing the move resigned, just two months before President Joko Widodo is set to inaugurate the new city of Nusantara.

The resignations intensify existing doubts about Nusantara, which has been plagued with delays and insufficient investment. Analysts suggest the project, seen as “politically driven” with questionable economic viability, might have been rushed to secure Widodo’s legacy before his term ends.

The Nusantara Capital City Authority was headed by Bambang Susantono, a former official at the Asian Development Bank, and his deputy, Dhony Rahajoe, an architect and former real estate developer. The pair did not elaborate on their decision to officially resign from their posts on Monday.

In a post on his official Instagram account, Widodo acknowledged the resignations but assured the public that construction on Nusantara would “continue according to the shared vision that has been set”.

He also noted that Minister of Public Works and Public Housing Basuki Hadimuljono and Deputy Minister of Agrarian Affairs and Spatial Planning Raja Juli Antoni would take over as the acting chief and deputy head of the Nusantara Authority until permanent appointments could be made.

Widodo’s grand vision for Nusanatara involves transforming 2,560 sq km (988 sq miles) of land nestled among the rainforests of East Kalimantan on the island of Borneo into a new green smart city set to serve as Indonesia’s political centre by the end of this year.