JAKARTA, Indonesia: On Wednesday, Indonesia’s President Joko Widodo, widely known as Jokowi, initiated the commencement of an airport construction project in the emerging capital city of Nusantara.
This week, President Jokowi is set to unveil a series of ten projects with a combined value of 12.5 trillion rupiah (equivalent to $783.85 million) within Nusantara. This ambitious endeavour is part of Indonesia’s comprehensive development plan for Nusantara, which is being created from the ground up amidst the lush jungles of Borneo Island.
The airport, sprawling across 347 hectares, is projected to be fully operational by December 2024, as confirmed by the president. However, specific financial details regarding the entire project were not disclosed.
Indonesia has grappled with attracting private investments for the $32-billion city, a flagship initiative championed by President Jokowi, aimed at relocating the government’s administrative center away from the overcrowded confines of Jakarta. The country has allocated a budget of 40.6 trillion rupiah for the construction of Nusantara in its 2024 financial plan.
A consortium of Indonesian enterprises, which includes Adaro, a prominent energy company, Astra International, a conglomerate, Agung Sedayu Grup, a property firm, and Barito Pacific, an energy corporation, has collectively invested approximately 20 trillion rupiah in Nusantara. This consortium initiated the construction of a hotel in September of this year. The details about other projects to be funded by this investment remain undisclosed at this time.
