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Local investors kick-start commercial projects in Nusantara
Local investors comprising several conglomerates kick-started their commercial investment in the new capital Nusantara with President Joko "Jokowi" Widodo calculating the investment at Rp 20 trillion.
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A worker is seen on June 8, 2023 walking at a construction site of the new capital Nusantara in North Penajem regency, East Kalimantan. (Antara// Fakhri Hermansyah)
P
resident Joko "Jokowi" Widodo led the groundbreaking for the first private investment in the Nusantara Capital City (IKN) project on Thursday, a city that is destined to house no more than 2 million people, thus raising questions whether the design can be sustainable or even achievable.
Jokowi said the first commercial project in the new capital would be a five-star hotel named Hotel Nusantara with the groundbreaking on more projects to follow later, which will include more hotels, hospitals and a grocery store.
He said it was the work of a consortium of local investors led by Sugianto “Aguan” Kusuma, founder of property giant Agung Sedayu along with other conglomerates from many sectors such as Sinarmas Group, Djarum Group, Barito Pacific, Adaro and Astra International.
In total, these conglomerates will invest Rp 20 trillion (US$1.3 billion), Jokowi estimated, adding that he expected that more would join the bandwagon.
The government has previously lured foreign investors to invest in new capital project, but many have yet to make firm decision other than conveying their intention. Developments have mostly relied on the state budget.
The groundbreaking took place after the government and the House of Representatives concluded a recent discussion to amend the new capital law to include a guarantee that the construction of the new capital city would continue as planned until 2045 regardless of changes in administration.
Meanwhile, the IKN Authority and the government have said on multiple occasions that only 2 million people will live in the city, citing a vision to create a livable and sustainable city.
