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Indonesia's Ambitious Nusantara Capital Project Faces Challenges

In this photo released by Indonesian Presidential Palace, Indonesian President Joko Widodo, center, talks with Indonesian Defense Minister and president-elect Prabowo Subianto, left, and Indonesian Vi

Indonesian President Joko Widodo recently convened his first cabinet meeting in the nation's upcoming capital of Nusantara, a city currently under construction that has sparked debates about its sustainability.

President Widodo has been operating from Nusantara for the past two weeks, utilizing an office within the construction site of the grand new palace shaped like the mythical Garuda eagle, a symbol of Indonesia. The city is gearing up to host its inaugural Indonesian Independence Day celebration in less than a week.

During a joint appearance with President-elect Prabowo Subianto in front of the palace, Widodo expressed confidence in the controversial $33 billion project, emphasizing that the Nusantara capital represents a vision for the future that few countries have the opportunity to realize.

Subianto affirmed his commitment to continuing the development of the new city once his administration assumes office on October 20, projecting a timeline of several decades for the completion of the project. He remains optimistic that the city will be fully operational within five years.

Groundbreaking ceremonies were also held on Monday for the construction of the vice presidential palace and several privately funded structures. The government anticipates covering only 20% of the total budget, with significant reliance on private sector investments to establish essential infrastructure and public amenities.

To attract investors, Widodo recently introduced incentives for stakeholders in the new capital, including extended land rights of up to 190 years. Construction of the city commenced in mid-2022 following Widodo's announcement to relocate the capital from Jakarta, citing issues such as pollution, congestion, seismic risks, and land subsidence in the current capital.

Officials envision Nusantara as a futuristic green city characterized by abundant forests and parks, powered by renewable energy sources and employing advanced waste management practices. The city is planned to cover an expansive area of approximately 1,000 square miles (2,600 square kilometers).

Widodo emphasized the importance of environmental sustainability, stating the aspiration for a capital with clean air, green energy, and eco-friendly transportation options. However, the project has faced criticism from environmental activists and Indigenous communities, who argue that it harms the environment, encroaches on endangered species' habitats like orangutans, and displaces Indigenous populations reliant on the land for their livelihoods.

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