Indonesia's new capital is being built in East Kalimantan province on the island of Borneo. Photo: Nikkei Asia

According to Reuters, on June 9, the chairman of the Indonesian Parliament's budget committee, Said Abdullah, said that the body had approved an additional 15,000 billion rupiah ($1.01 billion) to speed up the construction of the new capital Nusantara in East Kalimantan province on Borneo island. The additional money will be used to build the new capital this year, in addition to the 22,000 billion rupiah previously allocated. "So that in June 2024, the president can live there," Abdullah stressed during a hearing.

The decision comes as Indonesia speeds up construction of key administrative buildings in the new capital, including the presidential palace and key ministry buildings, with the goal of housing at least 16,000 civil servants, military and police officers by next year.

Indonesian President Joko Widodo has pledged that the government will only invest 20% of the estimated $32 billion cost of the new capital project, with the rest coming from the private sector. However, investors are still worried about the feasibility and continuity of the project despite the government offering many incentives. On June 7, within the framework of Eco Week 2023 in Singapore, Mr. Widodo called on global investors to provide large investments in the new capital Nusantara, while affirming the safety of these investments. Before introducing the plan to turn Nusantara into a world- class smart city covered with large green spaces, Mr. Widodo emphasized: "Your investment in Indonesia will be safe, as will the continuous development of Nusantara." Leader Widodo also pledged to provide attractive investment incentive mechanisms in Nusantara.

Building a new capital is an ambitious plan of Mr. Widodo. Shortly after starting his second term in 2019, President Joko Widodo announced the plan to move the capital as Jakarta faced severe traffic congestion, pollution and flooding. However, the Covid-19 pandemic put the plan on hold. From mid-2022, Indonesia will start building a new capital.

The new capital is located 2,000km northeast of Jakarta. Nusantara is designed as a green city, with forests covering 65% of its area and is the country's first carbon-neutral city equipped with world-classeducation and healthcare facilities. President Joko Widodo hopes that people will no longer have to worry about traffic jams and can comfortably walk or cycle in the new capital. Nusantara is also planned to become a high-tech city with the expectation of attracting the younger generation, especially "digital nomads" from around the world to live there. In May, Mr. Widodo announced the logo called "Tree of Life" of the new capital Nusantara. Nusantara's logo is inspired by the tree of life, meaning the source of life, with 5 roots symbolizing the Pancasila doctrine, 7 branches symbolizing the 7 major islands of Indonesia and 17 blooming flowers symbolizing eternal independence. Speaking at a ceremony broadcast live from Merdeka Palace, President Joko Widodo said that according to the philosophy of this logo, Nusantara will become a new source of life for everyone.

After the capital relocation, Jakarta will remain Indonesia's financial and commercial center. Embassies and representative offices of international organizations are expected to join government agencies in moving their offices to the new capital within 10 years of the start of the relocation.

Mr. Widodo's presidential term will end in 2024. Therefore, he does not have much time left to carry out his ambitious capital relocation plan.

LAM ANH