Indonesia’s ambitious plan to build a new capital city, Nusantara, is attracting significant interest from investors worldwide. President Joko Widodo, known as Jokowi, recently revealed that 472 investors have submitted letters of intent to participate in this megaproject. However, the Nusantara authority body has only approved 220 of these investors after a rigorous screening process, ensuring that only serious and capable players move forward.
Nusantara investors must meet strict criteria
The Nusantara authority body is carefully choosing investors, focusing on those who can demonstrate the capability and commitment required for such a massive undertaking. The rigorous selection process ensures that only those who meet strict criteria are allowed to invest in Nusantara, reflecting the government’s determination to secure quality investments that align with the project’s long-term goals. President Jokowi emphasized that no investment would proceed without thorough review, highlighting the importance of choosing the right partners for this critical national project.
The focus of Nusantara’s development is currently on the core government area, where key government buildings such as the state palace and ministers’ offices will be located. This area will remain the top priority for infrastructure development at least until the end of the year. Concentrating on the core government area is a strategic move to ensure that the vital functions of the new capital are established first, thus laying a strong foundation for the city’s future growth.
Domestic investors take priority
President Jokowi has announced that domestic investors will be given priority in the Nusantara investment process, reflecting Indonesia’s commitment to nurturing its domestic market. Only after domestic opportunities have been explored will foreign investors be considered. This approach aims to strengthen the role of Indonesian businesses in the development of the new capital, ensuring that the benefits of this massive project are realized at home.
A $33 billion undertaking
The total cost of constructing Nusantara is estimated to be $33 billion. The Indonesian government plans to cover only 20% of this amount through the state budget, with the remaining 80% expected to come from private investors. This reliance on private capital highlights the importance of attracting serious and capable investors to the project. For potential investors, this represents both a significant opportunity and a substantial commitment, as the success of Nusantara will depend heavily on the strength and reliability of its financial backers.
The development of Nusantara offers many opportunities. The establishment of a new capital city is expected to boost the real estate market, especially in the surrounding areas, as infrastructure improves and the region becomes a hub for government and business activities. However, the rigorous screening process and focus on domestic investment indicate that the market may be highly competitive, with high expectations for potential investors in this monumental project.
