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Indonesia hails Chinese firm as first foreign investor in troubled new capital

Source
Reuters - September 25, 2024

Jakarta – Indonesia's President Joko Widodo broke ground on Sept 25 for a Chinese firm's property complex in the South-east Asian nation's troubled new capital on the island of Borneo, hailing it as a pioneering foreign investment that will lure others.

Years after the President unveiled his US$32 billion (S$41 billion) flagship plan, aimed at easing the burden on congested, sinking and overpopulated Jakarta, the new capital has battled problems from construction delays to a lack of foreign investment.

Chinese property firm Delonix Group is "the pioneering foreign company investing in the new capital", said Mr Jokowi, as he is popularly known, with its investment of 500 billion rupiah (S$42.5 million) in the complex of hotels and offices.

"And this will bring confidence in other investors to enter the new capital," he added.

It is the first foreign investment in the new capital, said the authorities there. Delonix did not immediately respond to a request for comment.

Mr Jokowi earlier presided at the ground-breaking ceremony of a property complex developed by a domestic firm in partnership with a Russian developer.

The new capital of Nusantara is being built in a forested pocket on Borneo, about 1,200km from Jakarta, home to 10 million people.

The government has said just a fifth of the total budget for the plan will come from its coffers, with the rest from private investment.

Nusantara previously received a US$1.3 billion investment from a consortium of Indonesian companies.

Mr Jokowi, who has said work on the capital could last decades, plans to spend the final weeks of his administration there, he said in September. His successor, President-elect Prabowo Subianto, is set to take office on Oct 20.

Source: https://www.straitstimes.com/asia/indonesia-hails-chinese-firm-as-first-foreign-investor-in-troubled-new-capita

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