Foreign investors start dipping their toes in Indonesia’s new capital
30 September 2024
In one of his last acts as serving Indonesian president Joko Widodo this week officially broke ground on three projects by foreign investors at the from-scratch new capital, Nusantara, on the island of Borneo.
He has championed the new-capital scheme since 2019 but, despite lavish incentives, the private investment he has relied on to build the city out has mostly failed to materialise.
He hands over to president-elect Prabowo Subianto on 20 October.
On a busy Wednesday, he held groundbreaking ceremonies for three projects funded by Chinese, Russian, and Australian investors.
The biggest is a $33m (Rp500 billion) mixed-use scheme for Chinese investor Delonix Bravo Investment.
Covering 24,000 sq m, Delonix Nusantara will have a hotel, serviced apartments, shops and offices.
He held another ceremony for the $20m Magnum Resort Nusantara, a 13,000 sq m luxury residential scheme by Russian developer Magnum Estate, which builds resorts in Bali, reports CNA.
The third foreign groundbreaking was for Australian Independent School Nusantara.
Offering an Australian curriculum, its 7,900 sq m campus will accommodate 750 pupils.
The president used the trio of groundbreakings to encourage more.
“Land prices are indeed still low this year, but we don’t know about next year. Land prices could double, triple, five times, or even 10 times,” he said.
“So, I need to remind you if you want to invest, better start this year.”
Related
-
UCC Holding and Ashghal Launches the 3D-Printed Schools Project
13 June 2025
-
DBS, UOB provide $411 million loan to DayOne-INA data centre project in Indonesia
11 June 2025
-
Drinda, Schmid Pekintas to build 5 GW solar cell plant in Turkey
9 June 2025
-
Envision and SUN Terra to drive clean energy transition in key markets
8 June 2025
-
Algeria awards $500mln steel deal to Chinese firm
6 June 2025
-
Comfily Hong Kong to establish $20mln integrated industrial complex in Egypt
6 June 2025