Head, deputy head of Indonesia's new capital city authority resign, minister says

JAKARTA — The head and deputy head of Indonesia's new capital city authority, who were overseeing the US$32 billion (S$43 billion) project, have resigned, the state secretariat minister said on June 3.

The resignations come ahead of Indonesian President Joko Widodo's planned celebration at the new capital, called Nusantara, on Indonesia's Independence Day on Aug 17.

"The President has appointed the public works and housing minister and deputy agrarian minister as the acting head and deputy head," Indonesian State Secretariat Minister Pratikno said in a surprise announcement from the state palace.

The two officials were assigned to speed up construction of the new capital, he said. No reason for the resignations was provided.

Bambang Susantono, a former official at the Asian Development Bank who was head of the Nusantara Capital Authority, was not immediately available for comment.

Dhony Rahajoe, an Indonesian architect and former real estate developer who was the deputy head of the authority, also did not immediately respond to a request for comment.

The resignations of the two professionals come amid a lack of private funding for the ambitious new capital being built in a remote and jungled patch of Kalimantan, on the Indonesia part of Borneo island.

One of the stumbling blocks has been about the status of land ownership in the new capital site, Indonesian Public Works Minister Basuki Hadimuljono said during a news conference on June 3.

"We will soon decide on the status of the land," he said.

"Whether we sell it, rent it or if there will be co-operation between government and companies. We will speed it up so that investors won't have any doubts."

The Indonesian government has been racing to build the infrastructure