Indonesia’s President Prabowo to spend $3 billion on new capital by 2029 Reuters

JAKARTA (Reuters) – Indonesia’s new president, Prabowo Subianto It plans to spend 48.8 trillion rupiah ($2.99 ​​billion) to build the new capital “Nusantara” by 2029, with the aim of moving the government there in 2028, the head of the project said on Tuesday.

The $32 billion construction of Nuzantara in the jungles of Borneo island, a heritage project first started by former president Joko Widodo in 2022, has been delayed for several years due to the epidemic.

Widodo wanted to move the capital 1,200 km (745 miles) away from Jakarta on the congested and sunken island of Java, but analysts predicted that Prabowo would not be as ambitious as he had previously called it a white elephant project.

Widodo has spent 75.8 trillion rupiah between 2022 and 2024, according to Finance Ministry data.

Nusantara Authority Chief Basuki Hadimuljono told reporters that the next phase of construction will focus on housing and office buildings for parliament and the judiciary as most of the government executive offices are ready.

The minister stated that the government is still working to attract private investors to build the city. The Malaysian Citadel Group Company and other investors will soon open the hotel, residential and office construction investment worth a total of 6.5 trillion rupiah.

($1 = 16,330.0000 rupiah)