Bloomberg News quoted Bambang Susantono, head of the newly formed Nusantara Capital City Authority, as saying that Indonesia has finally broken ground on Nusantara, the new capital of East Kalimantan on the island of Borneo, and plans to complete the city’s first government-funded project by 2024. One stage development. ,As mentioned. The first phase of the project, which costs about 50 trillion rupiah ($3.36 billion), will be fully funded by Indonesia’s 2022-2024 state budget, Susantono said. It will mainly include government buildings, as well as recreational facilities such as schools, hospitals and shopping malls. The work has finally begun, including clearing the land…
Indonesia has finally broken ground on Nusantara, the new capital of East Kalimantan on the island of Borneo, and plans to complete the city’s first phase of development in 2024 with government funding, Bloomberg News Bambang Susantono, head of the newly formed Nusantara Capital City Authority, was quoted as saying.
The first phase of the project, which costs about 50 trillion rupiah ($3.36 billion), will be fully funded by Indonesia’s 2022-2024 state budget, Susantono said. It will mainly include government buildings, as well as recreational facilities such as schools, hospitals and shopping malls. The work has finally begun, including clearing land and making roads for workers.
Overall, 80 percent of financing for the $34 billion project will come from the private sector, he added, noting that discussions with investors are ongoing and Indonesia may consider issuing bonds later.
In line with the plan
Susantono further stated that planning for the city is “in progress”. The goal is to have approximately 1.7 million to 1.9 million people living in Nusantara by 2045.
Authorities earlier said all energy in the city will come from renewable sources, 10% of its area will be used to produce food, and 80% of travel will be supported by public transport, cycling or walking.
seek private investors
To achieve all of these long-term goals, Indonesia will rely heavily on private sector and community fundraising, Susantono said. But SoftBank Group founder Masayoshi Son’s decision to raise money for the new capital took a hit. extract from the project.
However, a range of small, medium and large companies remains interested, Susantono said, without providing details.
Indonesia has also been attracting foreign investors — from Saudi Arabia to China — and in July, Russian President Vladimir Putin supply Let Russian Railways invest in Nusantara.
Tax incentives to attract residents and corporations
To encourage domestic migration to the new capital, Indonesia will offer lower income taxes for Nusantara residents and a special tax holiday for companies that relocate their headquarters there.
“But I do believe that if it’s a city for the people, a city for everyone, and not for a particular government agency, then it’s going to be self-planning,” Susantono said. “That’s unstoppable.”
