Funding for Indonesia’s new capital

Funding is being secured for the construction of Indonesia’s new capital.
By MJ Woof February 6, 2025 Read time: 1 min
Construction is underway for Indonesia’s new purpose-built capital, Nusantara – image courtesy of © Fuad Abdullah| Dreamstime.com


The necessary funding is being secured for the construction of Indonesia’s new purpose-built capital, Nusantara. The Indonesian Government plans to spend US$3 trillion to develop the second phase of Nusantara’s construction programme. This is around half of the budget set aside for the first phase of the project, which was carried out between 2022 and 2024.

The works are being managed by the Nusantara Capital Authority, which was awarded responsibility for the project by Indonesia’s Public Works Ministry and Housing and Urban Development Ministry.

Construction is being carried out under a series of PPPs, managed by the Nusantara Capital Authority. Six road projects are included amongst the PPPs, as well as a series of infrastructure works for utilities and power supply.

The new capital is being built due to the numerous problems with Indonesia's traditional capital, Jakarta. The city suffers serious traffic congestion and pollution and is also sinking, putting it at risk from climate change.

 

Finance & Funding

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