Crowdfunding a capital: Indonesia's unusual pitch raises eyebrows
-
Loading... - Hisoka Teruya
- 28 Mar 2022
- 361 Views
- 0 Like
- 0 Comment
Indonesia has suggested crowdfunding the relocation of the country’s capital after a major investor declined to back the $32bn project, prompting ridicule from critics and questions about ownership of the planned city.
The unorthodox proposal came to light on Monday when the head of the government agency behind the plan told local media the option is being explored after Japan’s SoftBank Group Corp opted not to invest in the project.
“We will explore all creative funding models,” said Bambang Susantono, the head of the Nusantara National Capital Authority.
SoftBank confirmed it would not be involved in the project earlier this month, more than two years after Indonesia’s investment minister, Luhut Pandjaitan, announced the firm had pledged $40bn for the venture – an amount SoftBank denied discussing at the time.
Pradarma Rupang, head of the Mining Advocacy Network in East Kalimantan, the proposed location of the new capital, expressed concern that any crowdfunding effort would be dominated by businesses hoping to make a profit.
“As a result, I don’t know if there will be any reciprocity for these donors. Will they be shareholders?” Rupang told Al Jazeera. “What will be the compensation for these donors?”
Rupang said it would also be unreasonable to expect the general public to foot the bill.
“The community has been burdened with taxes, high education and other costs and the government has revoked fuel subsidies,” he said. “People are also paying for their own healthcare, particularly as the government has lost control of the COVID-19 pandemic.”
The Indonesian government first announced plans to move the capital from Jakarta to East Kalimantan, a remote part of eastern Borneo, in August 2019. Joko “Jokowi” Widodo’s administration has argued the relocation is necessary because Jakarta is sinking due to unregulated groundwater extraction and suffocating smog, overcrowding and chronic traffic congestion.
Under the plan, 1.5 million of Jakarta’s 11 million residents would be relocated to an undeveloped area of jungle chosen for its clean air, vast open space and distance away from regions more prone to natural disasters. Read More...
