👀 Ones to watch: The MOST undervalued stocks to buy right nowSee Undervalued Stocks

Indonesia holds curtailed Independence Day event in troubled new capital

Published 08/17/2024, 03:18 AM
Updated 08/17/2024, 10:22 AM
© Reuters. Indonesian military personnel march during a ceremony marking the country's 79th Independence Day at the Presidential Palace in the new capital city of Nusantara, East Kalimantan province, Indonesia, August 17, 2024. REUTERS/Willy Kurniawan

By Willy Kurniawan

NUSANTARA, Indonesia (Reuters) - Indonesia celebrated its independence anniversary at the site of its planned new capital, Nusantara, for the first time on Saturday, in a scaled-back ceremony as the still-under-construction city is beset by problems and faces delays.

A legacy project of outgoing President Joko Widodo, Nusantara has suffered construction delays and funding shortages due to the COVID-19 pandemic, a lack of foreign investment, and more recently, resignations of project leaders.

In Saturday's celebration of the country's independence from Japanese rule that ended in 1945, the number of attendees was cut to 1,300 guests, down from 8,000 initially, as lodgings and food supply were limited, Jokowi, as the president is popularly known, said earlier this week.

Hundreds of attendees from local communities and construction workers joined the ceremony under red umbrellas, with several under-construction buildings behind them.

Mulyana, a 38-year-old construction worker at the new capital, said he spent the last nine months to build a ministry office building which was partially used on Saturday for the celebration amid limited infrastructure to move the materials.

"For five months we work in 24-hour shifts, due to limited access we need two to three hours (daily) to move the concrete using heavy equipment," Mulyana, who like many Indonesians has a single name, told Reuters on Friday, adding that when he came a year ago, water and electricity supply were limited at the site.

Nusantara is being built in a forested pocket in the eastern side of Borneo island, about 1,200 km (745 miles) from the current capital, Jakarta, on Java island.

Jokowi has sought to shore up confidence in the $32 billion mega-project in recent months, breaking ground for hotels and office buildings and holding the first cabinet meeting in the eagle-shaped new state palace.

But he has also said plans to relocate thousands of civil servants to Nusantara could be postponed, subject to the readiness of the capital city, after previously ordering them to pack up and move in September.

© Reuters. Nusantara, Indonesia, August 17, 2024. REUTERS/Willy Kurniawan

Incoming president Prabowo Subianto, who also attended Saturday's ceremony, has promised to continue Nusantara.

A parallel celebration was also held in Jakarta, where most of the music and dances were performed.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.