STRATEGIC ASSESSMENT. A $30 billion legacy project by Indonesian leader Jokowi in East Kalimantan is plagued by uncertainty after it was revealed hundreds of foreign investment commitments to the city have not been realised, with economists suggesting overseas backers are sceptical.
Critics also say a claim by authorities that domestic investors are being prioritised in the project is merely a cover-up for the lukewarm appetite for Nusantara, tipped as the nation’s next capital. “So far, more than 300 [letter of intents] have been signed. I think that will continue to increase soon. But to this day, there is no real [investment] that has been commenced,” Jokowi told reporters.
Presidential candidate Anies Baswedan criticized the development of Nusantara capital city (IKN) during the Muhammadiyah open dialogue at the University of Muhammadyah, Surakarta.
Anies believes that the construction of IKN will not generate equity. Anies notices that the steps of IKN development are unrelated to that end goal. He believes that IKN will exacerbate existing inequalities. According to him, equity can be achieved by increasing the capacity of cities across all regions.
Indonesian presidential candidate Anies Baswedan has shot down the idea of moving the country’s administrative capital from Jakarta to Nusantara, saying this will create “new inequality” among different regions. “What is needed in Indonesia today is equitable growth where development is carried out not just in one location, but also in many locations,” he said. “This is our vision and we (in the coalition) are all preparing a programme structure to be able to encourage villages to develop – small towns to become medium, medium ones to become large throughout Indonesia.”
State-run electricity company PT PLN has set February of 2024 as the start time for the operation of the solar power plant currently being built in the new capital city Nusantara, East Kalimantan. “By February next year, it (solar power plant) will start operating with an (initial) capacity of 10 megawatts,” President Director of PLN Nusantara Power Ruly Firmansyah stated during a meeting with Commission VII of the House of Representatives (DPR) in Jakarta.
