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Indonesia to move its capital from Jakarta to Nusantara

koowipublishing.com/Updated: 29/08/2023

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Indonesia is harboring ambitious intentions to shift its capital from Jakarta to Nusantara in East Kalimantan. This strategic transition, slated for completion around 2045, forms a fundamental facet of President Joko Widodo's strategy to disseminate economic operations across the nation and alleviate the burgeoning populace and traffic congestion in the current capital.

Affectionately known as Jokowi, the President brims with unwavering optimism regarding this colossal endeavor. He envisions the emergence of Nusantara as a catalyst for enhanced business prospects and increased investments within Indonesia.

During a conference held in Singapore in June, the President vigorously championed the Nusantara investments as a "prosperous opportunity." He assiduously sought to assure potential investors that, irrespective of the outcome of the 2024 presidential elections, the project's stability and security would remain steadfast.

Yet, certain scholars harbor reservations concerning this capital migration. The Indonesian government's aspiration to relocate up to 1.9 million individuals to Nusantara by 2045, with some civil servants potentially moving as early as 2024, has drawn skepticism. Melinda Martinus, the principal researcher overseeing Socio-Cultural Affairs at the ISEAS-Yusof Ishak Institute, posits that such an endeavor could falter, given the preliminary stages of the project.

Martinus stipulates, "An allure needs to be woven around the new locale. Robust infrastructure encompassing educational institutions, medical facilities, and residential accommodations ought to be established to attract prospective residents, failing which the allure of relocation would be severely compromised."

The Nusantara National Capital Authority, entrusted with orchestrating and executing the new capital's development, has yet to respond to CNBC's request for commentary. The construction of Nusantara is projected to require approximately $35 billion in funding, yet the government has currently pledged to allocate only 20% of the required funds, as stated on the official project website.

The primary focus will be directed towards the development of essential components, including major roadways, water sanitation systems, the presidential palace, and the office of the vice president. This strategy has been outlined by the Ministry of Public Works of the country.


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