Did you know that Indonesia is building a new capital? It will cost $1 billion more World news
Indonesia’s parliament’s budget committee has approved an additional 15 trillion rupiah ($1.01 billion) to speed up the construction of Nusantara’s new capital, a senior lawmaker said Friday.
Abdullah said, the chairman of the committee, said that an additional 15 trillion will go to this year’s construction, on top of the 22 trillion rupiah that has already been allocated for the development of Nusantara in the island of Borneo in 2023.
“So, in June (2024) the president can live there,” he told a hearing with senior government ministers.
Indonesia is pushing to complete by mid-2024 the capital’s main administrative offices, including the presidential palace and key cabinet buildings, with at least 16,000 civil servants, military and police due to move there next year.
President Joko Widodo has promised that 20% of the project’s cost of $32 billion will come from the government’s pocket with the rest from the private sector.
However, not a single investment agreement has been signed as investors are concerned about the project’s feasibility and progress despite the government offering incentives. Indonesia will hold an election in February 2024 when a new president must be elected.
On Wednesday, Jokowi, as the president is known, raised capital to international investors in Singapore and promised the audience that any investment would have high returns. Jokowi finished second and last year.
