China and Russia pour money into Indonesia's new capital megaproject

Multimillion-dollar construction deals with major Chinese and Russian corporations have officially broken ground on Nusantara, Indonesia’s new capital, President Joko Widodo said, a major milestone for the new capital project, which has struggled to attract international investment.

President Joko Widodo at the groundbreaking ceremony of the Magnum Resort Nusantara project in Nusantara, East Kalimantan province, on September 25, 2024. Photo: Press

The projects, which range from real estate, hospitality toeducation , were officially inaugurated by President Widodo at a ceremony held on Wednesday, September 25. “We aim to build a strong and sustainable ecosystem in Nusantara, ensuring it becomes an attractive destination for investors,” Widodo said, as quoted by Antara news agency. “This demonstrates the confidence of investors, both local and international, that Nusantara is a promising investment destination.”

Tourism and Creative Economy Minister Sandiaga Uno expressed optimism about the new investments, saying they would stimulate more international capital flows, creating more jobs and business opportunities for all of Indonesia.

The first Chinese real estate project in Nusantara will be led by Delonix Group, a leading tourism and hospitality company, with an investment of up to 500 billion rupiah ($32.5 million). The 2.42-hectare complex will include a 200-room hotel, luxury apartments, a shopping mall, offices and sports facilities.

On the Russian side, Magnum Estate International, a well-known luxury real estate developer in Bali, will launch a 1.3-hectare integrated resort with serviced apartments and commercial space, also at an estimated cost of up to 500 billion rupiah.

In addition, an international education facility, serving 750 students from kindergarten to high school, will be developed by AIS Australia, an Australian-based international school system with campuses around the world. The new facility, which will cost 150 billion rupiah ($9.8 million), will include performing arts facilities, an indoor theater and a semi-Olympic-sized swimming pool, along with state-of-the-art science labs and STEM facilities.

Nusantara is seen as a major legacy for Mr Widodo, whose presidency ends on October 20. In 2019, he made a bold decision to move Indonesia’s capital from Jakarta – a bustling city that is facing sinking and congestion – to Nusantara. However, there have been concerns about the feasibility of the project and whether it will truly bring comprehensive benefits.

President-elect Prabowo Subianto has pledged to continue building Nusantara after taking office in October. Nusantara could see more groundbreaking projects, Widodo said. “In the next week, there may be more investors who are ready to start new projects,” he said, adding that other investors have also submitted proposals and letters of intent.

In addition, government infrastructure, funded by the state budget, is still under construction. Other projects that have started in Nusantara are mainly hotels developed by Indonesian businesses.

Dung Phan (According to Channel News Asia)

Source: https://www.congluan.vn/trung-quoc-va-nga-do-tien-vao-sieu-du-an-thu-do-moi-cua-indonesia-post314186.html