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皇冠下载:Indonesia’s new capital city plan falling apart

admin2023-01-193三公怎样打才能胜

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Pioneering point: People visit “ground zero” of Nusantara, the new capital city to be developed in Sepaku district in North Penajam Paser, East Kalimantan, on Aug. 17. The nation’s new capital has reportedly been designed as a sustainable city. – JP/ANN

JAKARTA: With its gleaming offices, electric buses and economically productive residents, Nusantara is the quintessential modern metropolis-smack in the middle of a vast rainforest.

At least, that’s what the government brochures depict. What they don’t show quite so clearly is where Indonesia will find US$34bil (RM149bil) to build a new capital city from scratch.

With just 18 months left in his final term, President Joko Widodo is still aggressively courting international investors to finance 80% of a project that he hopes will elevate Indonesia’s economy, resettle millions of people from rapidly sinking Jakarta-and cement his own legacy.

Hosting this year’s Group of 20 (G20) summit was just the latest opportunity for the president, popularly known as Jokowi, to pitch the ambitious project.

But more than three years after Nusantara was first announced, not one foreign party-state-backed or private-has entered into a binding contract to fund the project, according to sources.

While some potential investors have signed letters of intent, there’s no firm commitment to actual spending.

Jokowi is determined to see the project through, but the situation has left him impatient and worried, said the sources.

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When asked for comments, the president’s spokesperson referred to a speech on Dec 2, where Jokowi said that interest in investing in the new capital’s core area was 25 times oversubscribed.

However, the speech didn’t specify whether binding contracts have been signed.

Indonesia needs a way to safeguard its economic growth. But without significant investment, the president’s vision will fall apart.

“Foreign investors are super cautious as the project is still at the initial stage,” said Dedi Dinarto, lead Indonesia analyst at strategic business advisory firm Global Counsel.

Years of delays due to the Covid-19 pandemic have left potential backers hesitant to commit to the passion project of a president who will be out of office long before a new city could ever be completed.

Much of the early development work has focused on preliminaries like roads and bridges, Dinarto added, and “investors may still be uncertain about how they can make profits from investing in such basic infrastructure.”

Even if construction goes smoothly, any rewards for investors will be at least as long in coming.

“Many countries are either facing recession or are already in recession because of the global economic slowdown,” said Jakarta-based David Sumual, PT Bank Central Asia’s chief economist.

For the next couple of years, he pointed out, even the richest countries are likely to “prioritise their own domestic agenda.”

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