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

Related Content

  • US$366 million Vietnam coast road approved
    May 29, 2025
    Phan Thiet City project will include bridges over Ca Ty and Phu Hai rivers
    Read More
  • New Argentina highway construction work
    January 11, 2019
    Construction is underway for Argentina’s new Mendoza-San Juan Highway – Mauro Nogarin reports The rehabilitation and maintenance works of more than 3,300km of routes is now underway in Argentina. This followed on after the takeover of six new road corridors under the Public-Private Partnership (PPP) model, which took place in August 2018. The rehabilitation and maintenance works are being carried out prior to the start of the main projects, which will include the construction of highways. Building these
    Read More
  • US$268 million for Vietnam highway stretch
    August 7, 2024
    A US$268 million funding package will pay for a key Vietnam highway stretch.
    Read More
  • Tunnel project of Chilean capital Santiago
    April 8, 2015
    Tunnel construction in Chilean capital Santiago will help cut chronic congestion – Mauro Nogarin & Mike Woof write. Chile’s capital Santiago is a thriving city having benefited from the country’s economy growing strongly in recent years. The massive copper mining sector has helped boost the country’s GDP significantly in the past few decades, also aided by the growing international reputation of Chile’s large wine industry. The steady economic growth has resulted in an equally steady growth in average incom
    Read More

Highlighted Content