Indonesia’s president holds first cabinet meeting amid construction at new capital

Indonesian President Joko “Jokowi” Widodo convened his first cabinet meeting at the presidential palace in the country’s new capital on Monday, surrounded by dust and debris from under-construction buildings.

Jokowi called the inaugural cabinet meeting at the site of the new capital on Borneo island a “special” moment.

Many believe he considers the U.S. $32 billion plan to move the capital from Jakarta to East Kalimantan province his legacy project as he prepares to exit office in October having served the maximum two terms.

However, some public policy analysts said Jokowi’s decision to hold the meeting in the new capital Nusantara – having earlier begun official duties there – was calculated to show the solidity of a project dogged by construction delays, land acquisition obstacles and a demonstrable lack of investor interest.

Jokowi used the occasion to outline his ambitious vision for a sustainable, technologically advanced city that he hopes will drive equitable economic growth across the archipelago. 

“Nusantara is a canvas that will shape the future. Not every country has the opportunity and capability to build its capital from scratch,” he said in a speech from the presidential palace, called Garuda Palace.

“Nusantara is being developed with the concept of a forest city, a city full of greenery, not a city of concrete or glass. It is also a smart city, supported by technology in every aspect of its activities, and a livable city, comfortable to live in.”

The closed-door cabinet meeting at the palace was attended by almost all the members, including Prabowo Subianto, who is Jokowi’s successor and current defense minister.

During the meeting, Jokowi said that investment of 56.2 trillion rupiah ($3.5 billion) had been received so far for the new capital. This is far lower than the targeted investment of 100 trillion rupiah by the end of 2024.

In addition to the lack of investor interest, acquiring the total land needed for the new capital, some of which remains under the private sector’s control, has caused massive delays.  

But Luhut Pandjaitan, the coordinating minister for maritime affairs and investment, waved away these concerns on Sunday while inspecting construction at Nusantara.

“Concerns about land acquisition are exaggerated,” said Luhut.

“Everything will be resolved within this year.”

Meanwhile, Nusantara was bustling with activity on Monday with construction crews and government officials working to ensure the city was ready to host Independence Day celebrations on Aug. 17.

This is the first time the event would be held outside Jakarta. In a departure from tradition, the national Independence Day event will be held in Nusantara as well as in Jakarta.

The ceremony in Nusantara will be led by Jokowi and Prabowo.

The Garuda and State palaces are central to these preparations as those buildings form the backdrop to the celebration.

The Garuda Palace features two colossal wings, a national emblem, flanking its façade. The wings are meant to resemble a giant version of the wings of a mythological bird-like deity Garuda, the country’s national symbol.

Heavy construction has been halted since Aug. 10, with the focus now on finishing architectural details, interior work and landscaping.

The Garuda Palace will be installed with special lighting, adjustable to various colors, including the red and white of the Indonesian flag.

The historic national flag, called Sang Saka Merah Putih, and the original Proclamation of Independence text have been moved from Jakarta to Nusantara for the ceremony, officials said.

However, the number of guests attending the event has been cut to 1,300 from 8,000 announced earlier, local media reported, citing Jokowi. He said the new capital did not have enough hotels to accommodate so many people.

Jokowi in 2019 announced plans to establish Nusantara, highlighting the issues of overcrowding and pollution in Jakarta.

He has championed the project, seeing it as a key part of his legacy and a symbol of Indonesia’s progress.

Slated for completion in 2045, Nusantara is planned to accommodate about 1.9 million residents in an area of about 1,000 square miles.

Environmentalists have raised concerns about the impact of the new capital’s development on the surrounding rainforest and its biodiversity.

Additionally, the project’s massive cost has drawn criticism, particularly in light of Indonesia’s other pressing needs, such as poverty reduction and health care.

Jokowi has delayed signing a presidential decree to relocate the capital, hinting that it could be the task of his successor Prabowo, who, according to several analysts, may not be as keen on the project.

On Monday, though, the president-elect vowed to continue construction at Nusantara.

“I think I have repeatedly stated that I am determined to continue,” Prabowo said after the cabinet meeting, the news website Kumparan reported.

“Mr. Jokowi, I think, has taken a historical role. He initiated it, at least I will continue it, if possible, I will help complete it.”

He added though that construction should not be rushed.

 “We will definitely finish it … other capital cities also took a very long time. We should not force it, but I am optimistic that in five years I think it will function very well,” he said

Agus Pambagio, a public policy analyst, expressed skepticism that Prabowo would fully continue his predecessor’s vision for the project.

That’s because the analyst believed Prabowo would focus on other areas and investor interest would continue to remain lukewarm.

“He has his own promises to fulfill,” Agus told BenarNews.

“Jokowi’s maneuvers in Nusantara will not attract foreign investors. … No investor wants to build in the wilderness.”

Jokowi spent a few days in Nusantara last month, bringing with him celebrities and internet influencers who praised the new capital as state-of-the-art, peaceful and green. The decision to invite them sparked a wave of criticism online. Additionally, the Press Council said the president should have invited journalists, instead.

This is all part of Jokowi’s “expensive PR-ing” said Agus, who meant these events were public relations exercises. He was also referring to the cost of transporting hundreds of officials to the new city to attend the Independence Day celebrations

The president is showing that he remains committed to the project, said Cecep Hidayat, a political analyst at the University of Indonesia.

“Jokowi’s actions can be seen as bolstering the legitimacy and symbolism of the project,” Cecep told BenarNews.

“He wants to stress that [Nusantara] is more than just talk [and] it needs to be embraced by the public.”

Jokowi and Prabowo on Monday took a walk around the area inspecting structures under construction, a Cabinet Secretariat statement said.

Looking out toward the construction of the State Palace and other buildings, Jokowi told Prabowo that he believed the project was going as expected, a sentiment Prabowo reportedly echoed.

“I think we all feel the positive atmosphere here. The development is progressing well and if possible, we should accelerate it,” Prabowo said.

“Experts will be involved, and all our capabilities will be utilized. I am optimistic that it’s running very well.”

Jokowi, who leaves office in a little over two months, waxed eloquent about the environmental benefits of the new capital site, according to the statement.

“The air is cool, clean, just as we dreamed of – a green capital with clean energy, electric vehicles, good environment and fresh air,” Jokowi said.

“Everything is good.”