Indonesian Government wants law revision to future-proof Nusantara project

  • The government has submitted a revision to the Capital City Law to the House of Representatives, in which it proposes preventing the next president from ditching the project.
  • However, with an estimated overall cost of IDR466tn (USD30bn) and the COVID-19 pandemic delaying progress, some investors have expressed concern that development may lose momentum after Jokowi ends his second and final five-year term in office in 2024.
  • The capital’s success hinges on private sector involvement, with only 20% of costs shouldered by the state.
  • National Development Planning Agency (Bappenas) head Suharso Monoarfa said that revising the current law was crucial to give investors a guarantee that the construction of the new capital city would continue as planned until 2045.
  • None of the three current presidential hopefuls had shown a firm commitment to continue the project, even those who Jokowi supported.

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