Indonesia’s New Capital Nusantara Secures $3.7 Billion in Private Investments

Berita Baru, Jakarta – Indonesia’s ambitious new capital project, Nusantara, has attracted Rp 58.4 trillion ($3.7 billion) in private investments so far, with the figure expected to rise as more development projects begin, officials confirmed on Monday.

Businesses from both domestic and international sectors have already started working on various projects in the new capital, including the construction of hotels and hospitals. President Joko “Jokowi” Widodo has so far officiated eight groundbreaking ceremonies, marking the commencement of these major projects. The next groundbreaking event is anticipated before his term ends on October 20.

“The private investments that we have secured from the past eight groundbreaking phases totaled around Rp 58.4 trillion. It will likely increase as more projects come,” Basuki Hadimuljono, the acting chief of Nusantara’s authority body, said during a visit to the site, quoted from Jakartaglobe.id on Monday (7/10/2024).

President Jokowi is scheduled to visit Nusantara on October 10-11 to inaugurate the Indonesian Football Association (PSSI) training center. The first phase of the training center’s construction has received a $85.6 billion investment from FIFA, the world’s football governing body. The ninth groundbreaking ceremony is likely to coincide with the President’s visit.

“We are still finalizing the details on which projects would be ready to start construction,” Basuki added, noting that more investments are expected soon.

The Indonesian government plans to cover 80% of Nusantara’s overall funding through private investments. Initial estimates put the total cost of relocating the capital at around $33 billion, with less than a quarter of this amount coming from state funds.