Indonesia's Nusantara Capital Project Hits Snag, Leaving Investors Worried of 'Ghost City'
The ambitious new capital project for Indonesia has hit a snag, with state funding plummeting by over half since former president Joko Widodo launched the initiative three years ago. The funding now stands at £700m, down from £2bn in 2024, sparking concerns that the project may be heading towards becoming a 'ghost city'.
The project's new leader, Prabowo Subianto, has quietly downgraded Nusantara to a "political capital", despite promises of it being a thriving metropolis. The shift has raised eyebrows among experts and local residents who claim the new designation has no meaning in Indonesian law.
Critics argue that the lack of investment and political commitment from Prabowo's administration may spell doom for the project, with some citing reports of construction delays and environmental concerns. Environmental groups warn of a potential ecological disaster as mangrove forests are cleared to make way for infrastructure projects, including a new highway and port.
Local residents have also expressed frustration over promises that were never fulfilled, such as clean water from a new plant that was supposed to be built on the Sepaku River. Some even claim that flooding has worsened since the construction of the dam, cutting their harvests in half.
Despite these concerns, officials maintain that funding is available and commitment to the project remains unwavering. However, analysts suggest that Prabowo's focus lies elsewhere, with his flagship free schools meals program being the priority.
The Nusantara project was initially touted as a green city with only 25% of its 252,000-hectare site developed, but concerns have grown about the environmental impact and whether it will benefit local communities. Visitors to the site, such as Clariza from Sulawesi, describe it as clean and modern, like something impossible in the jungle.
However, many also comment on the 'ghostly' atmosphere of the new city, with few residents and a lack of activity, making it feel "strange and quiet". The question remains whether Nusantara will become a thriving hub for Indonesia or a ghost town that fails to deliver on its promises.
The ambitious new capital project for Indonesia has hit a snag, with state funding plummeting by over half since former president Joko Widodo launched the initiative three years ago. The funding now stands at £700m, down from £2bn in 2024, sparking concerns that the project may be heading towards becoming a 'ghost city'.
The project's new leader, Prabowo Subianto, has quietly downgraded Nusantara to a "political capital", despite promises of it being a thriving metropolis. The shift has raised eyebrows among experts and local residents who claim the new designation has no meaning in Indonesian law.
Critics argue that the lack of investment and political commitment from Prabowo's administration may spell doom for the project, with some citing reports of construction delays and environmental concerns. Environmental groups warn of a potential ecological disaster as mangrove forests are cleared to make way for infrastructure projects, including a new highway and port.
Local residents have also expressed frustration over promises that were never fulfilled, such as clean water from a new plant that was supposed to be built on the Sepaku River. Some even claim that flooding has worsened since the construction of the dam, cutting their harvests in half.
Despite these concerns, officials maintain that funding is available and commitment to the project remains unwavering. However, analysts suggest that Prabowo's focus lies elsewhere, with his flagship free schools meals program being the priority.
The Nusantara project was initially touted as a green city with only 25% of its 252,000-hectare site developed, but concerns have grown about the environmental impact and whether it will benefit local communities. Visitors to the site, such as Clariza from Sulawesi, describe it as clean and modern, like something impossible in the jungle.
However, many also comment on the 'ghostly' atmosphere of the new city, with few residents and a lack of activity, making it feel "strange and quiet". The question remains whether Nusantara will become a thriving hub for Indonesia or a ghost town that fails to deliver on its promises.