Fri. Nov 8th, 2024
Occasional Digest - a story for you

On a stage in Singapore, Indonesian President Joko Widodo spruiks his planned new $48 billion capital city Nusantara to a room full of global investors.

“I suggest you don’t wait too long. Don’t just sit and watch,” Mr Widodo, or Jokowi, told the international audience in June.

“This is a golden opportunity that is very captivating in Indonesia, which all of you can be part of.”  

Joko Widodo has been talking up his plan for a new capital but is yet to sign any formal funding deals.()

Nusantara, Mr Widodo’s flagship project, is envisioned as a green, smart city spanning nearly 260,000 hectares to replace the current overcrowded, rapidly sinking, polluted capital, Jakarta.

The Indonesian government will foot 20 per cent of the costs of the project, already being built in East Kalimantan province on Borneo island, and is shopping for private investors to pay for the rest.

But securing funds for the bold plan is proving to be a hard sell, with formal deals yet to be inked.

Experts say the risk of building a city “in the middle of nowhere” is “extraordinarily high”, while investors are worried the project would stall after Mr Widodo’s final term as president ends in 2024.

So far, Indonesia has reportedly approached multiple countries about the project including: Saudi Arabia, the United Arab Emirates, Japan, South Korea, Iran, Canada, Germany, and Singapore.

Prime Minister Anthony Albanese offered Australian “expert technicians” to help plan the “clean, green, and high-tech city” as part of a $5 million commitment when he met Mr Widodo in West Java in June 2022.

Albanese increases support for Nusantara

During a visit by Mr Widodo to Sydney on Tuesday, Mr Albanese announced a further package of support for Indonesia to develop its new capital.

Under the latest suite of measures, there will be scholarships for Indonesians to study sustainable urban planning and local government administration.

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