Earlier In June, Jokowi had promoted Nusantara during Singapore’s Ecosperity week. He assured business people that whoever will lead Indonesia in the future will focus on turning Indonesia into a powerhouse and giant of Asia.
“So everything will be fine, no need to worry, your investment in Indonesia will continue to be safe,” he stated.
Jakarta-based economist Bhima Yudhistira from the Center of Economic and Law Studies said the political uncertainty is among the reasons behind the lack of investments.
He said it is not normal that there are only NDAs and letters of intent inked at this stage with one year to go before the planned move.
“So far, investors are hesitant that the Nusantara project will go ahead because the law about Nusantara is currently being revised, and there will also be elections, so there are uncertainties about policies.
“If the next president wants to build it, but it will be a palace to just rest, what then? So there are uncertainties. And this is a long-term investment, so the risk is high,” he said.
Despite the challenges, some are optimistic and enthusiastic about the new capital.
Jakarta local Mdm Herawati, who was visiting Nusantara with her daughter-in-law living in Balikpapan located about a 1.5-hour drive away, said she was excited to see the development of the proposed capital.
“We always monitor the development from the news, but we are curious and want to see first hand, and this was my aim to go to Balikpapan here,” said Mdm Herati, speaking to CNA at point zero, a geodesy site in Nusantara open to the public during weekends.
“Based on the construction work and that the labourers work day and night, I think they will have it ready on time,” said Mdm Herawati, who goes by one name.
Meanwhile, her daughter-in-law Susanti is fascinated by the development.
“I think it will be done on time because we can already see the building, which will be the future palace.”