Leading Indonesian figures step down from the multibillion-dollar construction of a new capital city.
Jakarta - The leaders in charge of Indonesia's $32 billion plan to create a new capital have abruptly stepped down, fueling doubts about the project.
With the current capital of Jakarta having 10 million people, severely impacted by overcrowding, persistent traffic jams, and flooding due to sinking land, Indonesia is in the process of establishing a new capital named Nusantara on the island of Kalimantan, which it shares with Malaysia.
The country's State Secretariat Minister Pratikno announced on Monday that the head and deputy head of the overseeing body had left, and had been replaced by the public works and housing minister and the deputy agrarian minister. These appointments are intended to speed up construction progress. Pratikno insists that the resignations were a long-discussed topic and has been expected.
In a post on his Instagram account, Indonesian President Joko Widodo reassured the public that the project's development would proceed.
"The development of the new capital will continue in line with our shared vision," he wrote.
Bambang Susantono, previously in charge of the initiative, and his deputy, architect and real estate developer Dhony Rahajoe, did not immediately respond to inquiries.
The government is working to have the necessary infrastructure ready for the relocation of the first batch of 12,000 civil servants this September. However, the timeline has been delayed twice and the resignations come amid mounting concerns about a shortage of private funding for President Widodo's landmark project.
"These resignations will spark questions about the project," said analyst Arya Fernandes with the Indonesia's Centre for Strategic and International Studies. "The challenge is convincing investors that there are no problems.”
One major hurdle is the legal status of the land at the new capital site, Public Works Minister Basuki Hadimuljono revealed in a Monday press conference.
"We will shortly determine the status of the land," he said. "Will we sell it, lease it, or form a partnership between the government and companies? We'll hasten the decision to address any investor concerns."
President Jokowi, as Widodo is known, will visit Nusantara on Tuesday to inaugurate various projects, including schools, while Independence Day celebrations are scheduled there on August 17. He'll be stepping down in October after serving the maximum two terms in office.
Prabowo Subianto, the president-elect closely aligned with Jokowi, has vowed to further advance the new capital's development.
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The new capital city, named Nusantara, is planned to be established in Indonesia on the island of Kalimantan, aiming to resolve the overpopulation and infrastructure issues of Jakarta. Amidst concerns about private funding, Asia, being a region with significant financial influence, could potentially step in to support the multibillion-dollar project.
Despite the resignations of key figures in charge of the new capital project, including Bambang Susantono and Dhony Rahajoe, the Indonesian President Joko Widodo remains optimistic about the development's progress, affirming the shared vision for the city.
