When Nusantara was announced as Indonesia’s recent capital, the thought carried a daring promise: to exchange overpopulated, polluted and sinking Jakarta with a purpose-built city, a leap into the long run.
The plan was to relocate ministries, government officials and eventually lots of of hundreds of residents to a very recent location in East Kalimantan, deep within the jungle.
As an article in The Guardian notes, the vision was “utopian”: wide boulevards through the forest, a futuristic government headquarters, skyscrapers, lush green areas and advanced infrastructure.
Reality check: empty streets and missing people
However, after three years of construction, this dream is showing disturbing signs of stagnation. According to The Guardian, Nusantara’s wide avenues remain largely empty, with only a handful of presidency officials and construction staff living there, well below the goal population of 1.2 million by 2030.
State funding has fallen: from £2 billion in 2024 to £700 million in 2025, with only £300 million planned for next 12 months, roughly a 3rd of the funding requested.
Moreover, private investment fell greater than £1 billion below targets. This combination of reduced funding, weak private investment and low population numbers has led commentators to warn that Nusantara is susceptible to becoming a “ghost town”.
Political will and changing priorities
Part of the challenge is waning political momentum. The article reported that in May, incumbent President Prabowo Subianto quietly downgraded Nusantara from “full capital” to “political capital,” although the move was not made public until several months later.
Some analysts claim that the project isn’t any longer as much of a priority because it was through the previous Joko Widodo administration.
A constitutional law researcher quoted by The Guardian describes Nusanta as “already a ‘ghost town'” and claims that the brand new label “has no meaning” in Indonesian law.
Local impacts
In practice, the economic slowdown had real consequences for local businesses and communities. Small businesses that thrived during this era of construction and relocation at the moment are facing decline. One of the owners of a non-public accommodation recalls that when her employees left, her income fell by half.
Laundry services, convenience stores and other ancillary trade declined sharply. For indigenous and native peoples, the situation is much more tense: environmental damage, disruption of river flows and lack of livelihoods have been reported.
For example, a farmer living near the Sepak River claims that for the reason that construction of the water treatment plant, flooding has increased, reducing his harvest by half.
Environmental activists estimate that greater than 2,000 hectares of mangrove forests have been cleared within the last two years in consequence of infrastructure work.
What now?
The growing gap between ambition and reality poses various threats. Without sufficient population, business activity, clear government alignment, and ongoing funding, a city may find yourself functioning more as a showpiece or secondary facility than as a full seat of presidency.
Some analysts suggest that Nusantara may turn right into a tourist destination as a substitute of fulfilling its original role.
On the opposite hand, government officials say funding stays and so they are still committed. The head of the Nusantara capital city government, for instance, insists that funding has simply been “redirected, not cut.”
In summary, the grand concept of constructing Indonesia’s “capital of the long run” in Nusantara has encountered difficult realities: empty streets, limited population, sharp budget cuts and changing political emphasis.
Although the infrastructure is visible and tangible – ministry buildings, roads, airport – but much of town stays under construction and sparsely populated.
There is a risk that unless momentum is regained and the unique vision just isn’t recalibrated, what was once intended to symbolize a brand new starting may as a substitute grow to be an emblem of overreach.
Only time will tell whether Nusantara can transform from a planned utopia right into a bustling capital city, or just begin functioning as a quiet, modern ghost town.
