Indonesia’s Future Capital Nusantara Faces Doubts Amid Delays and Funding Cuts
Construction of Indonesia's new capital, Nusantara, in Borneo is facing significant skepticism as progress slows and funding challenges mount. Originally announced in 2019 by former President Joko Widodo to replace the sinking, overcrowded Jakarta, the $30 billion project aims to create a futuristic, renewable-energy-powered city. However, by April 2026, the core district houses only about 10,000 residents, far below expectations. Critics raise concerns about environmental damage and impacts on Indigenous populations. Political uncertainty has intensified since President Prabowo Subianto took office in October 2024; his administration halved state funding for 2026 compared to the previous year, and he delayed his first site visit until January 2026. These developments have fueled international fears that Nusantara could become a 'ghost city.' Despite these hurdles, government officials maintain that the political capital will be operational by 2028. The situation highlights the tension between ambitious infrastructure goals and logistical, financial, and political realities in Indonesia's transition.
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Indonesia’s Future Capital Nusantara Faces Doubts Amid Delays and Funding Cuts
Construction of Indonesia's new capital, Nusantara, in Borneo is facing significant skepticism as progress slows and funding challenges mount. Originally announced in 2019 by former President Joko Widodo to replace the sinking, overcrowded Jakarta, the $30 billion project aims to create a futuristic, renewable-energy-powered city. However, by April 2026, the core district houses only about 10,000 residents, far below expectations. Critics raise concerns about environmental damage and impacts on Indigenous populations. Political uncertainty has intensified since President Prabowo Subianto took office in October 2024; his administration halved state funding for 2026 compared to the previous year, and he delayed his first site visit until January 2026. These developments have fueled international fears that Nusantara could become a 'ghost city.' Despite these hurdles, government officials maintain that the political capital will be operational by 2028. The situation highlights the tension between ambitious infrastructure goals and logistical, financial, and political realities in Indonesia's transition.
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