Indonesia’s New Capital Project Set to Receive USD 2.7 Billion Funding in 2024

September 2023

As part of its 2024 budget, Indonesia has committed IDR 40.6 trillion, which amounts to USD 2.7 billion, for the development of its new capital city. According to government ministers, construction is progressing rapidly, with the presidential office and a dozen residential blocks for workers slated for completion in 2024.

Indonesia unveiled its plans in 2019 to construct a brand-new capital, known as Nusantara, on Borneo island. This ambitious endeavor aims to replace the overcrowded and sinking Jakarta as the capital of the Southeast Asian nation. The overall cost of this new city is projected to reach USD 32 billion, with expected completion in 2045.

Finance Minister Sri Mulyani Indrawati has announced that an additional IDR 35 trillion (USD 2.28 billion) from the 2024 budget will be directed to the Ministry of Public Works and Housing. This funding will be utilized for the construction of infrastructure and residential accommodations for government employees.

In September 2023, the government is set to commence the construction of residences for approximately 16,000 civil servants, military personnel, and police officers, all of whom are scheduled to relocate to the new housing units in 2024. This information was shared by Basuki Hadimuljono, the Minister of Public Works and Housing.

As part of the plan, the government aims to finish constructing 12 out of the 47 apartment blocks by July 2024.

(Source: Reuters)

Our Services

Orissa International provides consulting services to companies that want to develop a market entry strategy for Southeast Asia or implement their business expansion into the region. We have very strong domain knowledge of markets and industry sectors, and a business network of over 16,000 distributors, resellers, and system integrators, built through advising and guiding more than 5,000 companies with their market expansion into Singapore, Malaysia, Indonesia, Thailand, Vietnam and the Philippines over the last 25 years.