Nusantara. Hotel operators in Nusantara, the future national capital, have been facing lower occupancy rates since the government’s efficiency measures, introduced by President Prabowo Subianto last month, took effect.

Nearly all hotels in the Sepaku District of North Penajam Paser Regency, East Kalimantan, have reported a drop in bookings in recent weeks.

“We continue to receive guests daily, but the numbers aren’t as high as last year,” said Delvi, who owns a hotel in Sukaraja Village, during an interview on Monday. “We’re concerned that if this downward trend continues, our investment will be wasted.”

The austerity measures include significant cuts to non-essential travel among government employees, who have been the main contributors to hotel occupancy in Nusantara.

Local hotels are now relying more heavily on tourism to stay afloat.

“We have to stay hopeful that tourist numbers will continue to rise, as Nusantara has become an increasingly popular destination in the province,” Delvi added.

Hariyadi Sukamdani, chairman of the Indonesian Hotel and Restaurant Association (PHRI), noted last September that investors in the hospitality sector are adopting a wait-and-see approach before committing to new projects in Nusantara.

He explained that decisions on new developments will largely depend on the potential demand in the new capital, as well as the readiness of infrastructure in transportation, telecommunications, and logistics.

According to Sukamdani, hotel investment is often “the last to enter” a new city because it depends on the volume of people moving to the area.

The first hotel to open in the new capital was Swissotel Nusantara, which launched on August 17 of last year.