Foreign investors start dipping their toes in Indonesia’s new capital

GCR   2024-09-30 11:13:27

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.”

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