President Joko Widodo’s ceremonial visit to the site for Nusantara has turned the national spotlight towards Indonesia’s future capital city this week. Amid all of the niceties, the president has finally shed some light for the general public into just how massive of an undertaking — and expensive — building a capital city is.
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Speaking today from his camping site in East Kalimantan’s North Penajem Pasar Regency, Jokowi said the new capital city is expected to cost around IDR466 trillion (US$32.5 billion).
“This is not an easy job; this is a complicated job. For that reason, [construction of the capital city] requires a long time. Our estimate is between 15 to 20 years for its completion,” Jokowi said.
The president added that the National Budget (APBN) will cover 19-20 percent of the cost. The rest of the money will be pooled from private and public investments, state-owned enterprises, public obligations, and more.
Overseeing the construction of Nusantara would be the National Capital Authority (IKN). Last week, President Jokowi appointed Asia Development Bank sustainable development vice president Bambang Susantono (who is also a former deputy transport minister) to lead IKN. Dhony Rahajoe, who was a managing director at private developer Sinar Mas Land, serves as Bambang’s deputy.
The site for Nusantara is located between the East Kalimantan metropolises Balikpapan and Samarinda. President Jokowi’s administration announced in 2019 that Indonesia’s center of administration would be moved away from traffic-clogged, polluted, and sinking Jakarta.
The government aims to start moving to Nusantara in 2024 despite concerns of pandemic-driven delays. The design of the new Presidential Palace, which features a massive Garuda structure, was approved earlier this year.
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