Indonesian President Joko Widodo has relocated his work to the presidential palace in the nation's aspiring new administrative capital in Nusantara, an ongoing $33 billion project that was announced in 2019 and has yet to be accomplished due to constant delays. 

“I couldn’t sleep well … maybe because it was my first time,” Widodo told reporters on Monday, adding “Everything is in good progress... There’s no problem with the water and electricity … The internet also works well.” 

The president did not specify how long he would be staying in the East Kalimantan province's presidential palace, which is 90 percent complete with thousands of workers on site. However, Widodo has scheduled the country's first Independence Day celebration to be held in Nusantara on August 17, where the city is expected to be inaugurated as the official capital.

Five years of delays

The relocation project has fallen years behind schedule due to its slow construction progress and missed deadlines, forcing the head of the Nusantara Capital Authority and his deputy to resign last month.

The majority of Nusantara's buildings are currently unfinished, with multiple ministry buildings' lower floors functioning. In addition, the constant delays disrupted the relocation plans of 12,000 civil servants who aimed to move to the city from the beginning of July. 

Administrative and Bureaucratic Reform Minister Abdullah Azwar Anas said the relocation timeline will be accommodated based on "infrastructure readiness." Meanwhile, Basuki Hadimuljon, public works and housing minister, reassured that the government is in the process of trying to obtain an additional 40 megawatts to power the city, where the current 10 megawatts capacity is generated through a solar power plant.

The unofficial capital is expected to be 15% complete by the Independence Day festivities, according to Widodo earlier this month, adding that the city is expected to be completed by 2045.

Nusantara's project investors

The construction project of Nusantara is reliant on private investment, with the Widodo administration accounting for 20% of the total cost, mainly constructing basic infrastructure, buildings, and utilities in the government's "core area."

In an effort to secure additional investments, Widodo signed a presidential regulation granting investors specific rights, including 190 years of future capital in terms of land rights. 

Pending presidential decree

The relocation of the new capital from Jakarta is not only hindered by intense delays in construction but also by Widodo's pending official decree that, once signed, officially recognizes Nusantara as Indonsia's capital. 

Widodo has essentially indicated that the decree may be issued by president-elect Prabowo Subianto, who has pledged in his campaign to continue the current president's projects upon his inauguration into office in October. However, this postponement of the decree will result in Prabowo's inauguration taking place in Jakarta since the Indonesian constitution mandates that the swearing into office must occur in the country's capital city. 

Prabowo may also face additional issues when resuming the project due to the lack of investors.