Indonesia’s President Prabowo to spend $3 billion on new capital city through 2029 By Reuters

JAKARTA (Reuters) – Indonesia’s new president, Prabowo Subianto, plans to spend 48.8 trillion rupiah ($2.99 ​​billion) by 2029 to build the new capital Nusantara, aiming to move the government there by 2028, a project manager said on Tuesday. :

Construction of the $32 billion Nusantara in the jungles of Borneo island, a legacy project first started by former president Joko Widodo, is set to begin in 2022 after years of delays due to the pandemic.

Widodo wanted to move the capital 1,200 km (745 miles) away from congested and sinking Jakarta on the island of Java, but analysts predicted Prabowo would not be as ambitious as his predecessor in what could be a white elephant project.

Finance Ministry figures show Widodo has spent 75.8 trillion rupiah on the project between 2022 and 2024.

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 executive branch offices are ready.

The government will still work to attract private investment to help build the city, he said, adding that Malaysia’s Citadel Group and other investors will soon begin investing in hotels, apartments and office buildings totaling 6.5 trillion rupiah.

($1 = 16,330,0000 rupiah)