Analysts: Indonesian president’s decision to work from new capital is PR move

Indonesian President Joko “Jokowi” Widodo’s decision to start official duties from the new capital on Sunday may be a move to hype his legacy project before he leaves office in October, some analysts told BenarNews.

The gargantuan U.S. $32 billion project on Borneo island has been marred by delays, land acquisition obstacles and a poor investment profile, among other issues. And the president may be attempting to show all is well, they added.

The Public Works and Housing Ministry said that as of July 18, the state palace and presidential office buildings were 87.6% and 88.5% complete, respectively, at the new capital, called Nusantara, in East Kalimantan province.

But one economist, Bhima Yudhistira, of the Center of Economic and Law Studies, is not convinced about Nusantara’s readiness, despite Jokowi’s significant step in the country’s transition to its new administrative heart.

“It’s merely a publicity stunt,” the Jakarta-based center’s director told BenarNews, referring to Jokowi's weekend plan.

A public policy expert at Trisakti University saw Jokowi's move as a bid to reassure the public that the massive investments already made in Nusantara have produced concrete results.

“This seems more like Jokowi’s attempt to bolster his image as his term is ending,” Trubus Rahadiansyah of Trisakti told BenarNews.

“It’s a symbolic gesture to demonstrate the operational readiness of the new capital.”

The Indonesian president had in 2019 first talked about building a new capital, citing Jakarta's overcrowding and pollution. 

The capital relocation is considered Jokowi's flagship project as he prepares to leave office in October after serving nearly a decade, comprising two terms. The Indonesian Constitution doesn’t allow a third term.

Analysts have since criticized the new site's rushed timeline, suggesting it was driven by Jokowi’s political ambitions and legacy concerns. 

Nusantara, slated for completion in 2045, is planned to accommodate around 1.9 million residents, on an area of 260,000 hectares, which is roughly equivalent to 1,000 square miles. 

Jokowi himself appears to be hedging about moving there for any substantial amount of time, although he may present his comments as a joke. 

Reporters this week asked if he would preside over a cabinet meeting during the upcoming visit – a local media report said one was scheduled for Tuesday, July 30.

“If everything is ready, but if there are no chairs, how can we sit? A cabinet meeting on the floor?” he answered. 

The presidential secretary later clarified to reporters that there would be more than chairs at the presidential office.

"Tables, furniture, lamps, chairs [all] are ready," Heru Budi Hartono told reporters.   

Jokowi has said earlier that a bigger move of civil servants and more offices hinged on the readiness of infrastructure like electricity, water, and office facilities. 

Jokowi's stay this weekend in the new capital is expected to be brief, Presidential Secretary Heru told reporters on Wednesday. 

“Perhaps he will be there for one or two days,” he said.

Project officials are ensuring critical infrastructure is in place, especially because Jokowi intends to spend more time in Nusantara closer to Aug. 17, the  country's 79th Independence Day, Budi said.

Nusantara is where the main Independence Day ceremony will be held. In a departure from tradition, the national event will be held there as well as in Jakarta. 

All ministry offices are expected to be operational in Nusantara by August to support the ceremony.

The ceremony will be led by Jokowi and the man who will take over from him,  President-elect Prabowo Subianto.

In Jakarta, Vice President Ma’ruf Amin and his successor, Vice President-elect Gibran Rakabuming Raka, Jokowi’s eldest son, will oversee the event. Prabowo and Gibran are scheduled to be sworn in on Oct. 20.

The backdrop for the Nusantara ceremony is expected to be the new presidential palace, with a much talked about structure atop, resembling Indonesia’s national symbol, Garuda, which is a  bird-like figure from Hindu mythology.

Most prominent in photographs of the new under construction palace are the two giant Garuda wings on either side of the building. Construction workers this week installed the 4,650th and final section of the giant Garuda, the Public Works and Public Housing Ministry said.

Designed by sculptor Nyoman Nuarta, the edifice weighs 1,398.3 tons, stands 77 meters (253 feet) tall, and spans 177 meters. 

Drinking water, unavailable until around two weeks ago, is expected to be ready by the end of July, said Basuki Hadimuljono, the acting head of the Nusantara Capital City Authority, on the website of the public works ministry.

Still, Jokowi has delayed signing a presidential decree to relocate the capital, hinting that it could be his successor Prabowo's task. 

The decree would detail the execution of the move and likely cover the practical aspects of the transition. A law signed in 2022, meanwhile, formally established the status of Nusantara as Indonesia’s future capital, setting the legal framework for the move.

Prabowo has vowed to continue the ambitious project but has not shown as much interest in accelerating its completion due to its financial demands, observers said.

He has prioritized other initiatives such as free school lunches, which was among his top election campaign  promises ahead of the February general election, some analysts said.

Funding will be the issue that determines Nusantara's fate after Jokowi’s term ends, said Bhima of the Center of Economic and Law Studies.

“It’s evident that the national budget will be allocated to support Prabowo’s key initiatives such as free school lunches, agricultural estates, and bioenergy projects,” he told BenarNews.

The budget to provide free lunches to all 82 million Indonesian school children dwarfs Prabowo's proposed annual budget for the new capital’s construction.

The free lunch plan has been allocated $4.4 billion for next year. Nusantara’s construction has been allocated an annual $1 billion by the upcoming government, Prabowo said in May.

The president-elect's inauguration in October has to take place in the country's capital, according to the Indonesian Constitution. Without a decree officially designating a new one, Jakarta remains the capital. 

Jimly Asshiddiqie, a constitutional law professor, predicted that Nusantara would not be ready for a legislative session required for the oath-taking ceremony.

 “It seems unlikely at the moment [for the swearing-in to take place in Nusantara],” Jimly, who is also a former head of the Constitutional Court, told BenarNews. 

“The official transfer decree could be issued by President Prabowo himself.” 

Jimly said that a more accurate prediction could be made towards the end of August. 

“With the current accelerated pace of construction, there could be a surprise, with the decree signed by Jokowi and the inauguration taking place there [in Nusantara]," he said.

Tria Dianti in Jakarta contributed to this report.