Housing Minister Laments Slow Construction Progress in Nusantara Despite Groundbreaking Ceremonies

JAKARTA, investortrust.id – Minister of Housing and Settlements Maruarar Sirait has expressed concerns over the minimal construction progress in Indonesia's new capital, Nusantara, despite numerous groundbreaking ceremonies by private entities. The issue was raised during a cabinet meeting led by President Prabowo Subianto at the Merdeka Palace on Tuesday, Jan. 21, 2025.

“We extensively discussed the private sector's role in Nusantara. Many have conducted groundbreaking ceremonies, but few have advanced to actual construction,” stated Maruarar, widely known as Ara, following the meeting at the Presidential Palace complex.

To address the matter, Ara recommended that the Head of the Nusantara Capital Authority (OIKN), Basuki Hadimuljono, reassess private sector projects to confirm their commitment to continuing development. He emphasized that companies delaying construction should be approached to clarify their intentions.

“If they fail to proceed, the projects should be reassigned to parties that are more committed,” Ara asserted. He also suggested setting clear deadlines to ensure accountability and adherence to the capital city’s development timeline, aligning with President Prabowo’s directive to prioritize serious private investors.

State and Private Sector Investments in Nusantara

Basuki revealed that the state budget (APBN) has allocated Rp 89 trillion ($5.7 billion) for the first phase of Nusantara's development from 2022 to 2024. Private sector investments that have reached the groundbreaking stage total Rp 58.4 trillion.

“The progress varies. Some projects have been completed, others are still in the design phase or under preparation,” Basuki explained. He also highlighted the ongoing public-private partnership (PPP) initiative, valued at Rp 60.9 trillion, and preparations for a ninth groundbreaking project worth Rp 6.5 trillion.

Ara stressed the importance of optimizing private sector involvement, noting that any delays by early participants in groundbreaking ceremonies, including the upcoming ninth project, must be addressed.

“This ensures swift progress, as directed by President Prabowo. We need to focus on serious private investors who are prepared to implement their projects,” Ara concluded.