The Indonesian government celebrated the country’s 79th national independence anniversary in two capitals. Today’s Jakarta and future Nusantara.

The scene was a bit strange. Around 1,300 guests found themselves among fields, cranes and half-finished buildings as just 15% of the work has progressed. The grandiose plan has been in the works for decades, but has only been implemented since 2022. Its final completion is predicted for 2042.

Then it is estimated that about 2 million people will live in Nusantara in a model city, if of course everything goes according to plan. With a population of over 10 million and another 30 million in the suburbs, Jakarta is literally drowning. Not only because it has all the problems of a huge metropolis, which did not always expand rationally, but also because its subsoil is loose and floods are an almost permanent phenomenon.

Big plans, but also delays

At the moment, a few thousand government employees have moved to Nusantara, as explained by Danis Sumadilago, head of infrastructure. The project is only in the first of five planned phases: “In the first stage maybe 20,000 people will come. But within the next five years we estimate around 200,000, 300,000″.

In addition to some concerns about the ecological consequences, financing difficulties arise. The cost of the titanium project is estimated at over 30 billion dollars, of which 80% will theoretically come from foreign investors. But in this part there are serious delays.

Indonesian President Joko Widodo nevertheless rushed to move to the new capital despite the difficulties and dreams of golden times.

“I am convinced that with our unity and cooperation, with the consistency we maintain, Indonesia, as a sovereign and powerful nation, will make a leap forward and achieve the vision of Golden Indonesia in 2045.”

The government warned him that he should limit his expectations and be more realistic, as Agus Papaggio, one of the political advisers on the project, points out: “A private sector investor is looking for profit. When he sees only a green field, he asks: What should I do? That’s why I told the president that he can only count on the state budget.”

Freebies for investors

To attract investors, Vidondo, who has led the country for 10 years, recently announced incentives for foreign capital, including land rights of up to 190 years and generous tax breaks.

With a population of approximately 275 million, Indonesia is Southeast Asia’s largest economy.

The newly elected president Prabogos Subianto, who takes office in October, has even more ambitious plans, which would further increase the costs. The fear of a half-finished ghost town is now real. But the political adviser insists the project will be completed. “Yes, I believe so. That’s why I insist it doesn’t stop. But with reduced powers. Because we don’t have a lot of money to implement it.”