Indonesian president holds first Cabinet meeting in unfinished new capital
Indonesian President Joko Widodo with Vice President Ma'ruf Amin leads a plenary Cabinet meeting at the Garuda Palace East Kalimantan province, Indonesia, Aug. 12, 2024. (Reuters Photo)


Indonesian President Joko Widodo convened his first Cabinet meeting in the future capital, Nusantara, surrounded by miles of construction and growing concerns over the sustainability of this ambitious megaproject.

Widodo began working from the city two weeks ago, using an office inside the construction site of the massive new palace in the form of the mythical eagle-shaped Garuda, the symbol of the country. The city is set to hold its first Indonesian Independence Day celebration in less than a week.

Appearing with his successor, President-elect Prabowo Subianto, in front of the palace, Widodo insisted that the controversial $33 billion construction effort would be worth it.

"The Nusantara capital is a canvas that carves the future. Not all countries have the opportunity and the ability to build their capital city starting from zero," Widodo said.

Subianto vowed that his administration will continue work on the new city after it takes office on Oct. 20.

"We will finish it, although the outline plan is dozens of years long, like other capital cities also took a very long time. We should not force it, but I am optimistic that I think it will function very well in five years," Subianto said.

Monday also saw groundbreaking ceremonies for the vice presidential palace and many privately funded buildings.

The government expects to pay only 20% of the planned $33 billion budget and relies heavily on private sector investment to build key infrastructure and public facilities.

In a bid to lure investment, earlier this month Widodo granted investors new capital incentives, including land rights of up to 190 years.

Construction of the new city began in mid-2022 after Widodo announced a plan to relocate the capital from Jakarta. The metropolis suffers from pollution and congestion, is prone to earthquakes, and is rapidly sinking.

Officials say it will be a futuristic green city centered around forests and parks that utilize renewable energy sources and smart waste management, spread over an area of about 2,600 square kilometers (1000 square miles).

"Cool air, clean air, as we dream of, we want a green capital city, be it its energy, electric vehicles, environment, air and everything," Widodo told reporters.

But the project, which is using land carved out of Borneo's jungle, has been dogged by criticism from environmentalists and Indigenous communities, who say it degrades the environment, further shrinks the habitat of endangered animals such as orangutans and displaces Indigenous people who rely on the land for their livelihoods.