STRATEGIC ASSESSMENT. President Jokowi on Tuesday said the construction of the new capital Nusantara will take at least 15 to 20 years to complete. He expressed hope to see progress, following the inauguration of New Capital Authority Head Bambang Susantono and his deputy Dhony Rahajoe last week.
Jokowi advised Bambang to actively look for funding to finance Nusantara’s construction. He also said 80 percent of the total construction cost of IDR466 trillion will come from non-state revenue and expenditure budget, including public-private partnership, private investment, state-owned investment, or bond issuance.
President Jokowi said the government is committed to initiating the construction of the new capital by rehabilitating existing forests. He also said Nusantara will be a “forest city” of endemic plants. Environment and Forestry Minister Siti Nurbaya Bakar on Tuesday said the Mentawir Nursery, which is being set up near the new capital, will support land rehabilitation efforts for the city’s development.
Maritime Affairs and Investment Coordinating Minister Luhut Binsar Pandjaitan on Tuesday said SoftBank pulled out of the Nusantara construction project due to the falling shares of the Japanese firm. Luhut said the government is looking for new investors, adding that potential investors include the UAE, Saudi Arabia, and China. Luhut said an investor from Abu Dhabi has expressed interest to invest around $20 billion through the sovereign wealth fund.
People’s Consultative Assembly (MPR) Speaker Bambang Soesatyo on Tuesday said the government made the right move to relocate the capital because Jakarta’s capability to provide services has declined.
The construction of Nusantara has the potential to displace 20,000 local and indigenous people, the Mining Advocacy Network (Jatam). (Red/many sources)
