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Nusantara Struggles: Budget Cuts Threaten Indonesia's New Capital

9/8/2025

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Story summary
  • Nusantara, Indonesia's new capital, faces significant challenges a year post-inauguration, including budget cuts and construction delays.
  • President Prabowo Subianto has shifted focus to welfare projects, slashing the capital's budget from 43.4 trillion to 6.3 trillion rupiah.
  • Only 1,000 city authority employees live in Nusantara, far short of the 2 million target by 2045.
  • Officials report 97-98% completion of the core government area, yet many facilities remain unfinished.
  • Local businesses experience a sharp decline in earnings, with some on the brink of closure.
  • Experts caution that without robust political backing, Nusantara may become a "white elephant."