Jokowi opts for banker to run new capital city project

The decision to steer clear of a political appointment with Asian Development Bank’s Bambang Susantono has gone down well.

A computer-generated image of Indonesia's future presidential palace in East Kalimantan. Picture: AFP

The creation of Indonesia’s new capital city, Nusantara, will be overseen by a senior Asian Development Bank executive, President Joko Widodo announced on Thursday after hinting for weeks that the city would be led by a “non-party figure”.

Bambang Susantono, the current ADB deputy chairman and a former Indonesian transport minister, was sworn in as the new chief of the Nusantara authority at the presidential palace in Jakartawhile Dhony Rahajoe, managing director at infrastructure giant Sinarmas Land, was named his deputy.

Susantono’s position will be equal to that of a cabinet minister. Under the newly passed State Capital Law, the president has the final say in appointing and dismissing the chief.

Susanto and Rahajoe will be responsible for the development of 256,000 hectares of land for Nusantara, where the president and at least six ministry offices will relocate by 2024 in the first phase of the relocation.

Susantono and his deputy will also oversee business permits and facilitate investments for the project expected to cost US$35bn, with only 20 per cent coming from state funds. Earlier this week, a senior minister said that a delegation from the United Arab Emirates had pledged to contribute to the development of Nusantara through the Indonesian Investment Authority.

The decision to steer clear of a political appointment has gone down well amid strong speculation that Jokowi was preparing to anoint former Jakarta governor Basuki Tjahaja Purnama (Ahok) and current West Java governor Ridwan Kamil — a potential 2024 presidential candidate — to the positions.

“The leader of the new capital city must not have any personal or political interests and must simply follow the plans and instructions already laid out by the president, planners, and experts,” Ujang Komaruddin, executive director of Indonesia Political Review, told The Australian.

“A figure like this would not have any vested interests or anything that can divert his focus.”

Some construction is already underway in the North Kalimantan districts of Penajam Paser Utara and Kutai Kartanegara, the two locations that will be transformed into Nusantara.

Among the first projects is the Sepaku Semoi dam, which will provide clean water to some of the city’s newcomers and is slated for completion by 2023.

Construction for a new presidential palace over 100ha will begin this year.

The capital city relocation project has been the subject of constant and sometimes fiery debate; over its heavy price tag, the environmental risks it poses, and the threat to Borneo’s indigenous Dayak people who fear being pitted against the newcomers.

But Jokowi has insisted that moving the national capital to underdeveloped Kalimantan will bring progress and welfare to its people, and shift the focus of Indonesia’s traditionally Java-centric government.