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Indonesia Drops Nusantara Study Visits to Egypt, Turkey, and India Due to Budget Constrains

Erfan Maruf
February 22, 2025 | 11:22 am
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The State Palace and the Garuda Palace in the new capital Nusantara as seen on July 28, 2024. (Antara Photo/Hafidz Mubarak A)
The State Palace and the Garuda Palace in the new capital Nusantara as seen on July 28, 2024. (Antara Photo/Hafidz Mubarak A)

Jakarta. The Public Works Ministry has canceled plans for comparative studies on building designs in Indonesia’s new capital, Nusantara, due to budget efficiency measures. Minister Dody Hanggodo said the review will instead rely on online resources.

President Prabowo Subianto has requested a reassessment of the legislative and judicial building designs in Nusantara. In response, the ministry, in collaboration with the Nusantara Capital Authority, formed a Design Team led by Deputy Minister Diana Kusumastuti.

The team initially planned study visits to Egypt, Turkey, and India to examine government building designs. However, with budget reductions in place, the research will now be conducted using online references.

“Due to budget constraints, the comparative studies may not be necessary. We can access the information through Google,” Dody said on Friday.

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Following the decision to cancel visits to the three countries, the team will broaden its benchmarking approach beyond those nations' designs. They are now considering architectural references from other countries, including Sri Lanka. Additionally, they will incorporate input from Chief Infrastructure and Regional Development Minister Agus Harimurti Yudhoyono and Nusantara Capital Authority Head Basuki Hadimuljono before presenting recommendations to the president.

“The final design may be concluded after the regional retreat in Magelang,” Dody added.

The cancellation comes amid significant budget cuts affecting the Public Works Ministry, which has suspended multiple infrastructure projects following a massive Rp 81.38 trillion ($5 billion) reduction in state spending. The cuts have impacted road maintenance, clean water supply expansions, and waste management programs nationwide.

The ministry must reduce its 2025 budget as part of President Prabowo’s broader plan to trim Rp 306 trillion ($18.7 billion) from government expenditures to finance priority programs.

Reports indicate that 18,000 contract workers have been affected. Dody clarified that these were non-permanent employees whose contracts had not been renewed due to ongoing budgetary reviews. The reductions have also led to the suspension of routine maintenance on 47,603 kilometers of roads and 563,402 meters of bridges. Additionally, all new bridge construction and other technical management support initiatives have been put on hold.

The ministry has also canceled wastewater treatment systems for 10,240 households and waste management facilities for 9,540 households. Plans to expand clean water access to 863 households have been scrapped. Other affected projects include sanitation programs at 1,400 locations, community-based infrastructure initiatives at 825 sites, and waste processing facilities at 100 locations.

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