Jakarta. President Joko “Jokowi” Widodo on Wednesday defended the government policy of offering land concessions for nearly two centuries to major investors in the future national capital, Nusantara.

The president said the new capital is being built on a tight budget and will require substantial financial support from the private sector to complete.

The decree on state land concessions in Nusantara grants a maximum lease of 190 years.

"This policy aligns with the existing law on the national capital, Nusantara. We want the Nusantara authority to have full power in attracting as many investments as possible, whether domestic or foreign,” Jokowi said at Halim Perdanakusuma Air Force Base in East Jakarta.

"The state budget only covers development in the core area of the new capital, namely the government complex. For the remaining areas, we depend on investments,” he added.

The president also explained why he delayed his initial plan to work from Nusantara starting this month until he retires on October 20, citing a lack of utilities.

“Water and electricity are still being prepared. We have installed electricity networks, but it needs time to cover every room,” he said.

The frequent torrential rains showering the future capital in East Kalimantan in recent days have also slowed down construction work, Jokowi noted.

However, the president confirmed that the August 17 Independence Day ceremony at Nusantara will proceed as planned to symbolize the start of the capital's relocation from Jakarta.

"This is a long-term project that may take 15 to 20 years to complete. Don’t think that by August 17 the new capital will be fully ready. I estimate that the construction progress will reach only about 15 percent by that day," Jokowi explained.