Indonesia's New Capital at Risk of Becoming a Ghost City Due to Funding Shortfalls and Lack of Political Will
Amidst the lush forest of East Kalimantan, Indonesia's ambitious new capital city, Nusantara, appears like an oasis in the wilderness. However, its gleaming skyscrapers and futuristic infrastructure stand eerily empty, save for a few gardeners and curious tourists. The city's fate is increasingly uncertain as concerns grow that it may become a "ghost town" due to funding shortfalls and lack of political will.
Former president Joko Widodo launched the project three years ago, aiming to replace Jakarta, the congested and polluted capital. However, under President Prabowo Subianto, who took office last October, state funding for the new capital has plummeted more than 50%. The allocated budget for next year is a mere £300m, a third of what was initially requested. Private investment has also fallen short by over £1bn.
The Nusantara Capital Authority claims that the project is not at risk and that there is still sufficient funding in place. Basuki Hadimuljono, head of the authority, insists that the government's commitment to the project remains unwavering. However, analysts point out that Prabowo's focus has shifted elsewhere, such as his flagship free schools meals program, which is slated to receive an annual budget of £15bn by 2026.
As a result, construction work in Nusantara has slowed down significantly, leaving many workers without overtime pay and reduced income. Environmental groups have also raised concerns about the ecological damage caused by infrastructure projects, including the clearing of over 2,000 hectares of mangrove forest.
The Indigenous Balik people living near Sepaku River, where a water treatment plant was built, report worsening flooding and reduced fish populations due to pollution and damming. They had been promised clean water from the new plant but received none. The community is now struggling to source their own water, which they claim has never materialised.
As Nusantara struggles to stay afloat, it remains unclear whether its vision of a green city will be realized or if it will become just another tourist destination like Singapore. Critics argue that the project has not brought economic benefits to local communities and may have ultimately harmed them.
For now, the future of Indonesia's new capital hangs in the balance, leaving many to wonder if Nusantara will rise from the ashes as a thriving oasis or fade away into obscurity as a ghost town.
Amidst the lush forest of East Kalimantan, Indonesia's ambitious new capital city, Nusantara, appears like an oasis in the wilderness. However, its gleaming skyscrapers and futuristic infrastructure stand eerily empty, save for a few gardeners and curious tourists. The city's fate is increasingly uncertain as concerns grow that it may become a "ghost town" due to funding shortfalls and lack of political will.
Former president Joko Widodo launched the project three years ago, aiming to replace Jakarta, the congested and polluted capital. However, under President Prabowo Subianto, who took office last October, state funding for the new capital has plummeted more than 50%. The allocated budget for next year is a mere £300m, a third of what was initially requested. Private investment has also fallen short by over £1bn.
The Nusantara Capital Authority claims that the project is not at risk and that there is still sufficient funding in place. Basuki Hadimuljono, head of the authority, insists that the government's commitment to the project remains unwavering. However, analysts point out that Prabowo's focus has shifted elsewhere, such as his flagship free schools meals program, which is slated to receive an annual budget of £15bn by 2026.
As a result, construction work in Nusantara has slowed down significantly, leaving many workers without overtime pay and reduced income. Environmental groups have also raised concerns about the ecological damage caused by infrastructure projects, including the clearing of over 2,000 hectares of mangrove forest.
The Indigenous Balik people living near Sepaku River, where a water treatment plant was built, report worsening flooding and reduced fish populations due to pollution and damming. They had been promised clean water from the new plant but received none. The community is now struggling to source their own water, which they claim has never materialised.
As Nusantara struggles to stay afloat, it remains unclear whether its vision of a green city will be realized or if it will become just another tourist destination like Singapore. Critics argue that the project has not brought economic benefits to local communities and may have ultimately harmed them.
For now, the future of Indonesia's new capital hangs in the balance, leaving many to wonder if Nusantara will rise from the ashes as a thriving oasis or fade away into obscurity as a ghost town.
. I mean, it sounds like they're losin' funding left and right, and that's not even somethin' new, even with the new president comin' in. They said one thing, but it's just not happenin'. It's all 'bout the money, innit? 
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. Indonesia's got more important things to focus on than buildin' a ghost town that nobody wants to live in 
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. This whole Nusantara thing is gonna be a major disaster if they don't get their act together 
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I'm worried about Nusantara, it's like they're building a city with one hand tied behind their back. £300m is just peanuts for something that huge and ambitious. And what's with the lack of funding for workers who need overtime pay? That's just cruel. It's also super ironic that this new capital is all about sustainability but the environmental groups are already sounding the alarm on pollution and ecological damage... 
I'm getting this bad feeling about Nusantara... 3 yrs ago it was all hype & promise 
now we're seeing some pretty bleak signs 
funding shortfalls & lack of political will are not a combo to make a city thrive 
what happened to the original vision of a green city? 
seems like just another example of good int's going astray due to poor planning & prioritization 
I hope the gov doesn't abandon ship on this one, ppl in East Kalimantan are counting on it 
i mean, £300m is just a tiny fraction of what was originally planned... plus the environmental concerns are major 
those mangrove forests were cleared for no reason, it's going to take years to recover from that. and the people who lost their jobs, they deserve better 
anyway, only time will tell if nusantara will become a ghost town or something else entirely 
! The Indonesian government is being super careless with its finances and now Nusantara is gonna be a ghost city? It's like, come on guys! You've got £300m for one year? That's peanuts compared to the initial budget. And those workers are still waiting for overtime pay? Not cool at all 
. I feel bad for the Indigenous Balik people too - clean water and no fish populations? That's just not fair 
. The whole project seems like a huge gamble, but what if they actually make it work? 
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. The slowing down of construction work and its impact on workers' livelihoods is a pressing concern that demands urgent attention 
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. They're basically pouring money into thin air here 
. And what about all those workers who are stuck without overtime pay and reduced income? 
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and now we got people losing their jobs and environmental groups all worried about the ecological damage... but on the bright side, at least indonesia's not alone in having problems with infrastructure projects 
and i guess if nusantara does end up being a ghost town, we can just use it as a learning experience to make future cities better