The grand celebration to inaugurate Nusantara as Indonesia’s new capital faced setbacks as construction delays cast uncertainty on the transfer date. Initially planned for 8,000 guests, only 1,300 were invited due to incomplete infrastructure. President Widodo held the event at the new State Palace in Borneo, as Vice-President Amin attended a concurrent celebration in Jakarta.
With Jakarta facing environmental and infrastructure challenges, the move to Nusantara aims to create a futuristic, green city. However, the project has faced criticism for environmental degradation and displacement of Indigenous communities.
Despite challenges, the new capital project is in progress with plans for government buildings and sustainable infrastructure. With Indonesia’s largest economy, private sector investment will play a crucial role in funding the $33 billion budget for the new capital.
As Indonesia sets the stage for its new capital, the transition signals a new era of development and potential for economic growth, attracting investors with incentives for long-term land rights and tax breaks.