Jokowi: No Risk of Nusantara Megaproject Stalling Despite Budget Cuts
Solo. Former President Joko "Jokowi" Widodo has dismissed concerns that the construction of Indonesia’s new capital, Nusantara, will stall due to budget cuts, asserting that the project is a long-term endeavor.
Jokowi made the statement during Mata Najwa bersama Najwa Shihab, as quoted from the show's YouTube channel on Wednesday.
Jokowi said relocating the capital is essential to ensuring balanced economic development across Indonesia. He noted that the majority of the country’s economic activity is concentrated in Java, where 56 percent of the population resides.
“If this continues, Java’s carrying capacity will be overwhelmed. That’s why we need to design a political capital outside Jakarta, just like Washington DC in the US or Canberra in Australia,” Jokowi said.
Amid speculation that President Prabowo Subianto's austerity measures could derail the project, Jokowi dismissed the notion, saying, “There is no risk of Nusantara being abandoned. This is a long-term project—10, 15, even 20 years.”
Jokowi also underscored the complexities of moving a capital city, comparing it to relocating a household but on a much larger scale. “Everything must be prepared—schools for civil servants' children, hospitals, markets, and infrastructure. It’s not an easy task,” he added.
President Prabowo has pledged to continue the project and plans to relocate his office to Nusantara by 2028. However, since taking office on October 20, 2024, he has yet to visit the site in North Penajam Paser Regency.
The Prabowo administration has allocated Rp 48.8 trillion ($3 billion) for Nusantara’s development until 2029, with a focus on building legislative and judiciary facilities. However, this year’s budget has been suspended due to fiscal austerity measures.
Since construction began, the government has spent Rp 40 trillion on key infrastructure, including roads, bridges, ports, and residential facilities. The largest portion—Rp 18.32 trillion—was used for transportation networks, while Rp 12.09 trillion funded government buildings, water treatment systems, and waste management facilities.
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