Prabowo Pledges Continuation of Indonesia's $32 Billion Capital Project

President Prabowo Subianto reaffirms his commitment to Indonesia's $32 billion capital project, emphasizing the government's dedication to constructing the new capital, Nusantara. With financial challenges and project delays, Prabowo's presence in Borneo underscores efforts toward sustainable development. The goal is to complete essential government facilities by 2028 despite fiscal constraints.

President Prabowo Subianto reiterated his administration's commitment to the $32 billion initiative aimed at constructing Indonesia's new capital, Nusantara. This declaration came during his first overnight stay as president in the newly planned city, a legacy project left by his predecessor Joko Widodo.

The project, devised to relocate the government from sinking Jakarta to a more sustainable location in Borneo, confronts fiscal and timeline challenges. Analysts express concerns about the fiscal space needed for completion, given Prabowo's other priorities in a restrained budgetary environment.

Despite these hurdles, the government continues work on critical infrastructure, aiming for an operational setup by 2028. The Nusantara National Capital's development remains a significant focus, though recent legal decisions have complicated land rights for investors, adding another layer of complexity to the project.