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Indonesia’s plans to build a new capital city have been dealt a blow by the unexpected resignations of two of the most senior officials overseeing the project.
Bambang Susantono and Vice President Donny Rahajoe both resigned from their seats in the House of Representatives. Nusantara Metropolitan Administration On Monday, Reuters report.
Secretary of State Pratikno President Joko Widodo accepted Susantono’s resignation. Asia News Network report.
Two ministers from Widodo’s administration are expected to take their place in the interim until permanent appointments are made.
President Widodo wrote on Instagram: Nusantara The South China Morning Post reported that talks between the two countries would be “in line with a shared vision”.
But his resignation could pose a setback for a new city being built on the east coast of Borneo.
With Jakarta, Indonesia’s capital and largest city, facing the risk of flooding from rising sea levels, President Joko Widodo’s government has decided to build an alternative city.
Nusantara will cost an estimated $35 billion to build and is not due to be completed until 2045. But around 6,000 government workers are expected to relocate there before the new president’s inauguration in October.
The Indonesian government has tapped prominent figures such as former British Prime Minister Tony Blair and Abu Dhabi Crown Prince Mohammed bin Zayed Al Nahyan to promote the project.
They are also using influencers: last year President Joko Widodo took dozens of social media stars on a tour to address concerns about deforestation.
Concerns have also been raised about how Nusantara will be funded: The Indonesian government has only committed to covering about 20% of the costs and it has struggled to find other sources of funding; in March 2022, Japan’s SoftBank pulled out of its investment in the project.
Neither Susantono nor Rahajoe immediately responded to requests for comment from Reuters and Business Insider.