Indonesian President Joko Widodo Inaugurates Multimillion-Dollar Construction Projects by Chinese and Russian Companies in Nusantara. On Wednesday, September 25, Indonesian President Joko Widodo inaugurated multimillion-dollar construction projects by Chinese and Russian companies in Nusantara, Indonesia’s new capital. He conducted the groundbreaking ceremony for a property complex funded by Delonix Bravo Investment, a Chinese company that is the first foreign investor in Nusantara.
The project, built on a 24,200-square-meter plot, is expected to attract more international investors and strengthen funding for the new capital, which has previously faced financial challenges.
Earlier, President Jokowi also led the groundbreaking for another project undertaken by a domestic company in collaboration with a Russian developer.
Nusantara Welcomes New Investments
Delonix Group, a leading Chinese tourism and hospitality company, has signed an agreement to spearhead the development of its first property project in Nusantara. With a total investment of 500 billion rupiah (approximately US$32.5 million), the project will cover a 2.42-hectare integrated area featuring a hotel with 200 rooms, luxury apartments, a shopping center, office buildings, and sports facilities.
Meanwhile, Magnum Estate International, a renowned Russian luxury real estate developer with a presence in Bali, will also enter the Nusantara property market with a 1.3-hectare integrated resort complex. This project, with a similar investment to the Delonix Group project, will offer serviced apartments and commercial spaces.
In addition to the property sector, the education sector has also attracted interest from foreign investors. Australia’s AIS, a leading international school network, plans to establish a world-class educational facility in Nusantara. The school is designed to accommodate up to 750 students, ranging from preschool to secondary levels, and will implement the Australian curriculum, reflecting AIS’s experience in operating international schools in various countries.
This project will involve an investment of 150 billion rupiah (US$9.8 million) and will be equipped with modern facilities, including an arts performance space, an indoor amphitheater, a semi-Olympic swimming pool, and advanced science and STEM laboratories, all designed to support a high-quality and holistic learning experience.
Nusantara Attracts Global Investors
President Jokowi stated that the presence of foreign investors in the new capital, Nusantara, can boost confidence in the city’s investment potential. He noted that the influx of foreign investment demonstrates that Nusantara is an attractive location for investment.
In his official statement, Jokowi revealed that Nusantara has received numerous Letters of Interest from foreign investors, which will need to be reviewed before approval. He added that the eighth groundbreaking ceremony held yesterday in Nusantara may not be the last before his term ends in October, as there is a possibility of new investments arriving soon.
The Future of Nusantara
The relocation of the nation's capital to Nusantara, initiated by President Jokowi, is currently facing significant challenges. Despite a budget allocation of $32 billion to address Jakarta's issues, the ambitious project continues to struggle with construction delays and a lack of foreign investment interest. Previously, the project had secured $1.3 billion in investment from a consortium of Indonesian companies.
The relocation project is set to become one of President Joko Widodo's legacies, with his term ending on October 20. The strategic decision aims to redistribute economic growth and address the increasingly complex urbanization issues in Jakarta.
Although the project is still in its early development stages, President-elect Prabowo Subianto has expressed his commitment to continue the development of Nusantara. This indicates continuity in national development policy, even though challenges remain, such as providing adequate basic infrastructure and ensuring community involvement in the development process.
