Indonesia's ambitious project to build a new capital city from the ground up is facing unexpected hurdles following the resignations of two key officials overseeing the $35 billion Nusantara initiative. This move has raised significant concerns about the future of the project, which aims to address the threat of rising sea levels to Jakarta, the current capital.
Resignation of Top Officials
Bambang Susantono and Dhony Rahajoe, who held pivotal positions at the Nusantara Capital City Authority, tendered their resignations recently, as reported by various media outlets including Reuters. This unexpected development has prompted a temporary transition plan, with two government ministers set to take over their responsibilities until permanent replacements are appointed.
Government's Response
President Joko Widodo, in response to the resignations, assured that the work on Nusantara would continue as planned, aligning with the overarching vision for the project. Despite this reassurance, the sudden departure of key officials could potentially disrupt the progress of constructing the new city on Borneo's eastern coast.
Financial Concerns and Funding
One of the major challenges facing the Nusantara project is securing the necessary funding. With an estimated cost of $35 billion and a completion timeline extending to 2045, concerns have been raised about the financial sustainability of the endeavor. The Indonesian government's commitment to cover only a fraction of the total cost, coupled with difficulties in sourcing additional funding, has added to the project's uncertainties.
Influencer and High-Profile Endorsements
To garner support and promote Nusantara, Indonesia's government has engaged influential figures such as former UK Prime Minister Tony Blair and Abu Dhabi's Crown Prince Mohammed bin Zayed Al Nahyan. Additionally, the government has leveraged social media influencers to raise awareness about the project and address environmental concerns, including deforestation.
The departure of key officials, financial challenges, and the need for sustainable funding sources pose significant obstacles to Indonesia's ambitious plans for the new capital city. As the project progresses, overcoming these hurdles will be crucial to ensuring the successful realization of Nusantara.
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By: gglover@insider.com (George Glover)
Title: Challenges Faced by Indonesia’s $35 Billion Capital City Project
Sourced From: www.businessinsider.com/indonesia-nusantara-jakarta-new-capital-city-joko-widodo-resignations-2024-6
Published Date: Tue, 04 Jun 2024 12:54:09 +0000
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