Chinese and Russian firms among first foreign investors in Indonesia’s new capital Nusantara with building projects

President Joko Widodo announced the signing of multi-million buck construction deals with big Chinese and Russian companies in Indonesia’s Nusantara, marking a crucial turning point for the new capital city, which had formerly struggled to safe worldwide funding. &nbsp,

At an inauguration ceremony on Wednesday ( Sep 25 ), Mr. Widodo officiated the projects, which span property, hospitality, and educational developments. &nbsp,

In remarks made by the Antara news agency, Mr. Widodo stated,” We aim to develop a strong and lasting ecosystem in Nusantara, ensuring it becomes an attractive investment destination. ” This shows the trust of investors, both local, domestic, and international, that Nusantara is a very attractive place for investment” .&nbsp,

Sandiaga Uno, the minister of tourism and innovative economy, expressed optimism about the new opportunities, saying they could spur more foreign investments that may expand Indonesia’s workforce and expand business opportunities.

The Delonix Group, a leading Foreign tourism and hospitality company, did spearhead China’s first house project in Nusantara with US$ 32.5 million in investments. The anticipated 2.42-hectare integrated advanced may comprise of a hotel with 200 areas, luxury rentals, shopping malls, offices and sports facilities. &nbsp,

Russia’s Magnum Estate International, a leading developer of pleasure real estate in Bali, will release a 1.3 square integrated hotel complex housing serviced apartments and commercial spaces, with identical estimated costs of up to 500 billion rupiah. &nbsp,

An international educational center, catering to 750 students from pre-school learning to high school, will be developed by Australia’s AIS which runs several international American education international schools. &nbsp,

Costing 150 billion rupiah ( US$ 9.8 million ), the new campus will feature performing arts spaces, an indoor amphitheatre and a semi Olympic-sized swimming pool and showcase cutting-edge science laboratories and STEM facilities. &nbsp,

Nusantara has been widely seen as Mr Widodo’s legacy.

On October 20, his term as president will come to an end. &nbsp,

In 2019, he made the decision to move Indonesia’s capital from Jakarta, a bustling but sinking and congested megacity. However, questions were raised about the project’s viability and how welcoming and beneficial the new capital city would be. &nbsp,

After taking office in October, President-elect Prabowo Subianto has pledged to keep building Nusantara. &nbsp,

Nusantara could see more groundbreaking projects, Mr Widodo said. In a week, he said,” We might see other investors ready to start new projects,” noting that many more investors had also submitted proposals and letters of intent. &nbsp,

Separately, government facilities, funded through state budgets, were still under construction, he said. &nbsp,

Other initiatives launched in Nusantara have primarily involved Indonesian companies developing hotels.