More Green Facility Groundbreaking in Nusantara as Investors Are Optimistic

Indonesia's new capital city develops at a swift pace as additional green infrastructure facilities launch this year

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Indonesia’s new capital city, Nusantara, in East Kalimantan, is developing fast as more construction of green infrastructure and facilities has been launched this year.

The fourth wave of construction is underway amid ongoing infrastructure development in Indonesia’s new capital city Nusantara, in East Kalimantan. [IMAGE: ANTARA FOTO]

On Wednesday (Dec 20), President Joko Widodo (Jokowi) launched the fourth wave of project construction in Nusantara, including green buildings developed by the government and private parties (PPPs). The President also inaugurated the first stone laying at the Central General Hospital (RSUP), opening construction in the Nusantara Superblock.

Nusantara will be green, sustainable, and resilient. The Nusantara Capital City Authority (OIKN) is emphasizing a green city concept, for which the government has mandated 65 percent of Nusantara’s area as tropical forest, 10 percent for green and food production areas, and 25 percent for urban areas.

Widodo said all parties are enthusiastic about building facilities in Nusantara’s business, health, and sports zones. The series of groundbreakings are carried out to encourage all parties investing in Nusantara and the developers to start construction immediately.

Project construction that has been started includes the presidential and vice presidential palaces, ministerial housing complex, housing for state apparatus and military/police members, Bank Indonesia (BI) office complex, and the Mentawir nursery.

Other projects include a solar power plant to generate electricity for the capital city, the construction of the PSSI National Training Center supported by FIFA, and supporting infrastructure such as an airport, three private hospitals, one general hospital, an international school, a local elementary school revitalization, hotels, apartments, a shopping center, and a toll road connecting Balikpapan to Nusantara.

One of the prominent green projects is the five-star Hotel Nusantara, which has progressed 34 percent to date. The hotel, with nine floors and 191 rooms, has an area of 20,164 square meters with a building height of 43.10 meters.

The government has estimated that infrastructure development in Nusantara requires a budget of Rp466 trillion (around US$ 30 billion). At least 20 percent of this infrastructure budget will come from the government, while 80 percent is expected to come through Public Private Partnership (PPP) schemes.

The Indonesian government also opens its doors to foreign investors who want to invest in Nusantara. Indonesia lauded the fast movement of several domestic investors to invest and start development in the capital city area. The President conveyed this during the groundbreaking of the Pakuwon Nusantara superblock in early November.

The President said that at least 130 investors from Singapore have come to see Nusantara in person, as well as investors from South Korea, Japan, Malaysia, and the United Arab Emirates. He believes many more investors will come to experience Nusantara as it develops, especially after the toll road and airport are completed.

Issued by:
Ministry of Communication and Information (KOMINFO)
Written by Kenzu Tandiah, Edited by Yuni Arisandy Sinaga
Copyright (c) Antara 2023

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