President Jokowi Launches Groundbreaking for Chinese Investment in Indonesia’s New Capital, Nusantara

Berita Baru, Jakarta – President Joko Widodo officially marked the groundbreaking of a Chinese firm’s property complex on Wednesday in Indonesia’s new capital, Nusantara, located on the island of Borneo. The President hailed this as a historic foreign investment that could open doors for more investors in the future.

In a speech at the groundbreaking ceremony, President Widodo, commonly known as Jokowi, emphasized the significance of Delonix Group, a Chinese property firm, becoming the “pioneering foreign company investing in the new capital.” The firm’s 500 billion rupiah ($33 million) investment in a complex of hotels and offices is the first of its kind in the troubled project.

“And this will bring confidence in other investors to enter the new capital,” Jokowi added, expressing optimism that this milestone would encourage more foreign investments to follow, As quoted from the Reuters page on Wednesday (25/9/2024).

The new capital of Nusantara, a flagship $32-billion initiative, was designed to alleviate the pressures on the overcrowded and sinking city of Jakarta, home to over 10 million residents. However, the project has faced significant challenges, from construction delays to an ongoing struggle to attract foreign investments.

Authorities have confirmed that Delonix Group’s investment marks the first foreign participation in the new capital. While the company has not yet responded to requests for comment, the government’s focus remains on drawing in more private investment, as only 20% of the total budget will be funded by the state.

Nusantara has previously secured $1.3 billion in investment from a consortium of Indonesian firms, and the groundbreaking of a domestic property complex developed in partnership with a Russian developer further underscores the project’s momentum.

President Jokowi, who has said that construction of Nusantara may take decades, revealed plans to spend the final weeks of his term in the new capital. His successor, President-elect Prabowo Subianto, is expected to assume office on October 20.

As Jokowi noted, “This project is a symbol of our nation’s future, and we are taking the first steps toward making it a reality.”

($1 = 15,080 rupiah)