Indonesia's planned new capital, Nusantara, is attracting growing investor interest as President Joko "Jokowi" Widodo continues to advocate for the ambitious project. On August 13, 2024, major local companies, including Bank Central Asia (BCA), commenced projects worth over IDR 4 trillion in Nusantara. These include a BCA branch office, a 12-hectare convention center and hotel complex by Royal Golden Eagle Group, and a three-star hotel under the Swiss-Belhotel chain by Hotel Papua Internasional. Intiland Development also announced plans to invest at least IDR 2.6 trillion in developing residential and commercial facilities, including apartments, office towers, and a golf resort.
Jokowi revealed that private sector commitments in Nusantara have reached IDR 56.2 trillion across 55 projects, including hospitals, educational institutions, and logistics hubs. However, this amount still falls short of the government’s target of raising around half of the IDR 466 trillion needed to build the new capital by 2045 from the private sector and public-private partnerships. To attract more investment, the government offers 80-year land concessions, extendable for another 80 years, along with generous tax incentives. While interest from foreign investors is increasing, with letters of interest from 475 companies, actual commitments are still limited. The incoming president, Prabowo Subianto, has reaffirmed his support for the project, aiming to ensure its completion and address concerns about its future under his administration.
