Indonesia's New Capital on Brink of Becoming a Ghost Town Amid Funding Shortfalls and Environmental Concerns
A sprawling, futuristic city in the heart of Indonesia's rainforest is struggling to take shape as its envisioned 'ghost city' status looms large. The ambitious new capital, Nusantara, launched by former President Joko Widodo in 2022, was touted as a game-changer for the country, promising to replace Jakarta as the nation's seat of power and provide a cleaner, greener alternative. However, three years into its development, concerns are growing that the project may never realize its full potential due to dwindling funding and an increasingly uncertain future.
State funding for Nusantara has plummeted, from £2 billion in 2024 to just £700 million the following year, with a further reduction planned for 2026. Private investment has also failed to materialize, falling short of the project's target by over £1 billion. The downgrading of Nusantara from 'new capital' to 'political capital' under President Prabowo Subianto has added to concerns about the project's viability.
Critics point out that the construction slowdown is not just a financial issue but also an environmental one. Environmental groups such as Walhi have accused the government of ignoring ecological damage caused by infrastructure projects, including the clearing of over 2,000 hectares of mangrove forest in the past two years. The NGO estimates that Nusantara will ultimately benefit few local and indigenous communities, instead exacerbating existing social and environmental disparities.
The slow pace of development has also had a devastating impact on local businesses. Small traders who once thrived on the influx of workers have seen trade collapse this year, with income plummeting by half for some. Environmental degradation has affected Indigenous communities living near the project site, with reports of increased flooding and pollution. Arman, a local farmer and fisherman, claims that promises of clean water from the new plant never materialized, instead contributing to worsening environmental conditions.
Despite the challenges, officials remain upbeat about Nusantara's prospects. The head of the Nusantara Capital Authority, Basuki Hadimuljono, insists that funding is in place and political commitment remains strong. However, analysts point out that President Prabowo's focus lies elsewhere, such as his flagship free schools meals program, which will have an annual budget of £15 billion by 2026.
Nusantara may ultimately become a luxury tourism destination, with foreign visitors drawn to its modern facilities and green spaces. As one visitor from Sulawesi observed, "It feels like Singapore – clean, modern, impossible in the middle of the jungle." However, this gleaming facade is set against a backdrop of uncertainty and environmental degradation.
The fate of Nusantara serves as a cautionary tale for large-scale infrastructure projects in the developing world. Will it succeed as the envisioned 'ghost city' or become a symbol of failed ambition? Only time will tell.
A sprawling, futuristic city in the heart of Indonesia's rainforest is struggling to take shape as its envisioned 'ghost city' status looms large. The ambitious new capital, Nusantara, launched by former President Joko Widodo in 2022, was touted as a game-changer for the country, promising to replace Jakarta as the nation's seat of power and provide a cleaner, greener alternative. However, three years into its development, concerns are growing that the project may never realize its full potential due to dwindling funding and an increasingly uncertain future.
State funding for Nusantara has plummeted, from £2 billion in 2024 to just £700 million the following year, with a further reduction planned for 2026. Private investment has also failed to materialize, falling short of the project's target by over £1 billion. The downgrading of Nusantara from 'new capital' to 'political capital' under President Prabowo Subianto has added to concerns about the project's viability.
Critics point out that the construction slowdown is not just a financial issue but also an environmental one. Environmental groups such as Walhi have accused the government of ignoring ecological damage caused by infrastructure projects, including the clearing of over 2,000 hectares of mangrove forest in the past two years. The NGO estimates that Nusantara will ultimately benefit few local and indigenous communities, instead exacerbating existing social and environmental disparities.
The slow pace of development has also had a devastating impact on local businesses. Small traders who once thrived on the influx of workers have seen trade collapse this year, with income plummeting by half for some. Environmental degradation has affected Indigenous communities living near the project site, with reports of increased flooding and pollution. Arman, a local farmer and fisherman, claims that promises of clean water from the new plant never materialized, instead contributing to worsening environmental conditions.
Despite the challenges, officials remain upbeat about Nusantara's prospects. The head of the Nusantara Capital Authority, Basuki Hadimuljono, insists that funding is in place and political commitment remains strong. However, analysts point out that President Prabowo's focus lies elsewhere, such as his flagship free schools meals program, which will have an annual budget of £15 billion by 2026.
Nusantara may ultimately become a luxury tourism destination, with foreign visitors drawn to its modern facilities and green spaces. As one visitor from Sulawesi observed, "It feels like Singapore – clean, modern, impossible in the middle of the jungle." However, this gleaming facade is set against a backdrop of uncertainty and environmental degradation.
The fate of Nusantara serves as a cautionary tale for large-scale infrastructure projects in the developing world. Will it succeed as the envisioned 'ghost city' or become a symbol of failed ambition? Only time will tell.
. I mean, who needs funding and environmental concerns when you've got grand visions, right? 
It's not like the government is just throwing money around for a shiny new project without thinking about the long-term effects on the people and environment affected by it. 
The fact that private investment has failed to materialize doesn't exactly fill me with confidence either... 
Maybe Nusantara can be the "Singapore of Indonesia" like someone mentioned? 
Only if we redefine "luxury tourism destination" to include "eco-disaster zone"... 
WHAT ABOUT ALL THE LOCAL COMMUNITIES WHO'LL BE DISPLACED OR IMPACTED BY THIS PROJECT?! WE NEED TO SEE MORE TRANSPARENCY AND ACCOUNTABILITY FROM OUR LEADERS WHEN IT COMES TO LARGE-SCALE INFRASTRUCTURE PROJECTS 
I mean, £2 billion to £700 million is like a huge drop in a bucket. And what's with the delay from 'new capital' to just 'political capital'? It sounds like the gov's losing interest or something 
The environmental concerns are legit though - who needs more mangrove forests gone? 
anyway, I think Nusantara is such a shame because it was supposed to be all about sustainability and green living but it seems like environmental concerns are being swept under the rug 
. I mean, 2,000 hectares of mangrove forest cleared just to make way for the project? That's crazy! 
I'm getting a bad vibe from this project... It's not just about the money, it's about the environment and the people who are gonna get hurt. 2k hectares of mangrove forest cleared already? That's like cutting down half the city's lungs 
. And the income of local businesses has plummeted by half? That's devastating for them and their families. I don't think Nusantara can be just a luxury tourism destination and ignore the real issues here. We need to see more transparency and accountability from the government on this project. It's not just about the capital, it's about the people who are gonna live there 
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The tourists might come in the future, but what about the locals who are struggling now? We need more focus on sustainable development rather than just throwing money at a project 
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. On a more serious note tho, £700 million is like, a tiny fraction of what they actually needed for this project to even break ground... I mean, I get that stuff costs money, but come on! 
. And those local businesses being affected by the whole thing? It's just not right... but what if Nusantara does become this luxury tourism spot? Would it even matter who else is making bank off it? 
Indonesia's new capital project is like, totally struggling and it's not even 3 years in yet! 
It's heartbreaking.
We need to do better, you know? 
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They were all like 'we're committed to reducing our carbon footprint' but then we see projects like Nusantara sprouting up and it just feels like they're not following through.
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It's like they're losing everything.
"Ghost town" is one thing, but "ghost city"? 
It's like the government took all the funding and resources from Jakarta and threw them into this massive project. And what do we get in return? A bunch of empty buildings and environmental damage. Not exactly the "cleaner, greener alternative" they promised. 
environmental concerns are super legit too, i mean 2000 hectares of mangrove forest cleared already? that's wild 
but I guess the government is all about that 'luxury tourism' life now 
and if Nusantara becomes just another tourist trap, then I'm not sure what the point of it all is... 
environmental groups r right btw 2k hectares of mangrove forest cleared already 
? The small traders who used to thrive because of the workers comin' in? It's like they're bein' left high and dry. I'm startin' to think that Nusantara might just become a ghost town after all, not 'cause it's supposed to be some fancy new city, but 'cause it's just not bein' managed properly 
. Let's get to the bottom of this and make sure that our future capitals are built with sustainability in mind, not just some fancy designs 
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