Key resignations have ‘hurt credibility’ of Indonesia’s ambitious Nusantara project: observers

[JAKARTA] The abrupt resignations of two top technocrats at Indonesia’s new capital city initiative Nusantara were mainly led by doubts over meeting key deliverables on time and unresolved land and water issues, according to sources.

These woes have, in turn, deterred both domestic and foreign investors from committing funds to the multibillion dollar project, putting the fate of the project in East Kalimantan in jeopardy.

Several unresolved issues, including the availability of unencumbered land and a severe lack of water, are stalling progress, said the sources familiar with the project who did not wish to be named.