Indonesian leader spends final weeks of his term in unfinished new capital

By Ananda Teresia

JAKARTA (Reuters) - Indonesian President Joko Widodo will from Thursday spend the final weeks of his term in the country's planned new capital, Nusantara, amid doubts about the continued pace of development of his flagship $32 billion megaproject.

The massive infrastructure undertaking on the island of Borneo has suffered a series of setbacks, including construction delays, land issues, and a lack of foreign investment. This June the two top officials overseeing Nusantara abruptly resigned.

Jokowi, as the outgoing leader is known, reiterated on Thursday that it could be decades before Nusantara is finished.

"It could take 10, 15, or even 20 years," Jokowi told top military and police officials during a meeting in Nusantara's recently completed eagle-shaped palace.

"Moving to the new capital is not only about moving to a new building, palace or location," he added. "But is a change of mindset and working patterns."

Intended to ease the burden on the congested, polluted and densely populated current capital Jakarta, the parliament passed a law to move its capital in 2022.

But ahead of the Oct. 20 inauguration of president-elect Prabowo Subianto and Jokowi's eldest son, vice president-elect Gibran Rakabuming Raka, doubts have grown about Nusantara's future viability.

Analysts say the development of Nusantara is unlikely to continue at the same breakneck speed in the next administration.

Prabowo, who ran on a platform of continuing Jokowi's policies, is expected to prioritise his own signature $28 billion "free nutritious food program" targeting malnutrition and stunted growth in schoolchildren across the world's fourth-most populous nation.

Jokowi told officials on Thursday that Prabowo had promised to speed up construction.

Located on the eastern side of Borneo island, Nusantara is about 1,200 km (745 miles) from Jakarta.

Nusantara's presidential palace and its first hotel were recently completed, while housing for state officials, an airport and toll roads are still under way.

On Friday Jokowi is expected to hold his second cabinet meeting in Nusantara and may announce several new investments.

($1 = 15,413.0000 rupiah)

(Writing by Kate Lamb; Editing by Alison Williams)