From Jakarta to Nusantara: Indonesia's Epic Journey to Build a New Capital
The Indonesian government is actively devising an enticing financial scheme to attract potential investors and promote their involvement in the Nusantara development
Nusantara, the prospective new capital of Indonesia, is currently under development in East Kalimantan. This colossal project is slated to progress through five stages spanning from 2022 to 2045, demanding an estimated total investment of $33 billion.
This venture represents a significant opportunity for both private sector entities and foreign direct investment, aligning with the government's intention to construct an environmentally sustainable, pedestrian-friendly city heavily reliant on renewable resources, striving to achieve carbon neutrality within the coming decades.
Integral to this development vision are features such as a botanical garden, expansive parks, and open spaces aimed at endearing the city to its populace. The Indonesian government is actively devising an enticing financial scheme to attract potential investors and promote their involvement in the Nusantara development.
The architectural blueprint for Nusantara, known as the Nusantara Master Plan, outlines this new capital city's comprehensive development strategy. Spanning over 800 pages, this Master Plan is an essential component detailed within the State Capital Law and Presidential Regulation No. 63 of 2022, elucidating specifics regarding the development of 256,142 hectares of land and 68,189 hectares of territorial waters.
The envisaged Nusantara will be compartmentalized into three primary zones: the capital city, the government hub, and the expanded capital region. The development's phased completion, from 2022 to 2045, will culminate in a projected population of 1.7 to 1.9 million by phase 5 in 2040. Oversight and management of this ambitious project are entrusted to the Nusantara Capital City Authority, a dedicated agency directly accountable to the central government.
The nusantara project
Though the Nusantara project is progressing, it has encountered challenges and delays. At present, the construction progress stands at 27%, primarily focusing on foundational infrastructure in the initial phase commencing in 2022 and anticipated for completion by 2024. A critical objective is the relocation of up to 1.9 million individuals to Nusantara by 2045, with some civil servants expected to move as early as 2024.
Financially, the development is expected to cost around $35 billion, with the government committed to investing 20% of the required funds. Soil composition, comprising thin clay, poses a challenge for constructing skyscrapers and maximizing available space. Additionally, the project has faced criticism for insufficiently involving local workers, prompting the Nusantara Capital City Authority to increase the workforce to 150,000 to 200,000 to ensure local participation. Environmental sustainability is a paramount concern, affirmed by the government's commitment to planting at least 15 million trees, with 75% of the new capital designated as green spaces.
In summary, Nusantara's development is ongoing, aiming for completion in five phases spanning from 2022 to 2045, with the initial phase expected to conclude by 2024. Despite challenges, the government remains steadfast in realizing this monumental transformation, ensuring both sustainability and a better quality of life for future inhabitants.