JAKARTA, Jan 22 — Indonesia's new President Prabowo Subianto plans to spend 48.8 trillion rupiah (RM13.3 billion) through 2029 to build the new capital city "Nusantara", with a target of relocating the government there by 2028.
Construction of the RM142.8 billion Nusantara in the jungle of Borneo island, a legacy project first started by former president Joko Widodo, began in 2022 after years of delay due to the pandemic.
Widodo wanted to move the capital 1,200 km away from congested and sinking Jakarta on Java island, but analysts have predicted Prabowo would not be as ambitious as his predecessor for what could be a white elephant project.
Widodo spent 75.8 trillion rupiah between 2022 and 2024 on the project, data from the finance ministry shows.
Nusantara authority chief Basuki Hadimuljono told the press yesterday that the next phase of construction will focus on housing and office buildings for the Parliament and the judiciary, as most offices for the executive branch of government were ready.
He said that the government will still work to attract private investment to help build the city, adding that Malaysian company Citadel Group and other investors will soon break ground for their hotel, housing and office building investment worth a total of 6.5 trillion rupiah.
— Reuters
