Indonesia’s New Capital Nusantara Faces Doubts Amid Funding Cuts and Delays
Indonesia's ambitious project to build a new capital, Nusantara, in Borneo is facing significant skepticism and operational challenges as of April 2026. Originally launched in 2019 by former President Joko Widodo to replace the sinking, overcrowded Jakarta, the $30 billion futuristic city was designed to be powered by renewable energy. However, progress has been hindered by logistical issues, funding shortages, and political transitions. Since President Prabowo Subianto took office in October 2024, state funding for the project was halved for 2026, and his delayed first visit to the site has fueled concerns about his commitment. Currently, the core district houses only about 10,000 residents, far below expectations, leading to fears that Nusantara could become a ghost city. Critics also raise environmental concerns regarding the impact on local indigenous populations and forests. While the government aims to establish it as the political capital by 2028, the combination of reduced financial support and slow construction rates has intensified international and domestic doubts about the viability and future of this massive infrastructure undertaking.
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Indonesia’s New Capital Nusantara Faces Doubts Amid Funding Cuts and Delays
Indonesia's ambitious project to build a new capital, Nusantara, in Borneo is facing significant skepticism and operational challenges as of April 2026. Originally launched in 2019 by former President Joko Widodo to replace the sinking, overcrowded Jakarta, the $30 billion futuristic city was designed to be powered by renewable energy. However, progress has been hindered by logistical issues, funding shortages, and political transitions. Since President Prabowo Subianto took office in October 2024, state funding for the project was halved for 2026, and his delayed first visit to the site has fueled concerns about his commitment. Currently, the core district houses only about 10,000 residents, far below expectations, leading to fears that Nusantara could become a ghost city. Critics also raise environmental concerns regarding the impact on local indigenous populations and forests. While the government aims to establish it as the political capital by 2028, the combination of reduced financial support and slow construction rates has intensified international and domestic doubts about the viability and future of this massive infrastructure undertaking.
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