The capital was designed to relieve pressure on sinking Jakarta.
ADVERTISEMENTIndonesia commemorated its 79th Independence Day on Saturday with a ceremony in Nusantara, the unfinished future capital designed to relieve pressure on sinking Jakarta. However, construction of the new capital has fallen behind schedule.
Hundreds of officials and invited guests gathered amidst the ongoing construction, surrounded by government buildings in progress and the sight of cranes at the heart of Nusantara.
President Joko Widodo and his Cabinet attended the ceremony at the new Presidential Palace, which is shaped like Garuda, the mythical eagle-winged protector.
Originally intended to inaugurate Nusantara as the new capital, the celebration was scaled back due to construction delays, leaving the timeline for the capital’s relocation uncertain.
Widodo had initially announced 8,000 guests for the event, but the number was later reduced to 1,300 due to insufficient infrastructure.
The ceremony at the new State Palace on Borneo island happened simultaneously with a celebration at the Merdeka Palace in Jakarta, attended by Vice President Ma'ruf Amin.
Widodo began working at the new presidential palace in Nusantara in late July, holding his first Cabinet meeting there on Tuesday.
By 2050, one-third of Jakarta could be submerged due to uncontrolled groundwater extraction and rising sea levels from climate change.
Construction of Nusantara began in mid-2022, spanning 2,600 square kilometers of Borneo's jungle. Officials envision a futuristic green city, abundant with forests and parks, powered by renewable energy, and employing smart waste management.
However, the project has faced criticism from environmentalists and Indigenous communities, who argue that it damages the environment, threatens endangered species like orangutans, and displaces Indigenous people who depend on the land.
Most investors are Indonesian companies, with the government contributing only 20% of the $33 billion budget and relying heavily on private sector investment.
To attract investors, Widodo recently introduced incentives for Nusantara, including land rights up to 190 years and substantial tax benefits.
With a population of about 275 million, Indonesia is Southeast Asia’s largest economy.
Widodo, who has led the country for 10 years, is set to leave office in October.