Foreign Investment Pioneers New Indonesian Capital Development

Indonesia's President Joko Widodo inaugurated a Chinese firm's property complex in the new capital Nusantara on Borneo, marking the first foreign investment in the $32-billion project aimed at relieving Jakarta's congestion. This inauguration is seen as a positive signal to attract further foreign investments.

Indonesia's President Joko Widodo led the groundbreaking ceremony for a Chinese firm's property complex in the new capital, Nusantara, located on Borneo island. This marks the first foreign investment in the ambitious $32-billion project aimed at alleviating the pressures on Jakarta, which suffers from overpopulation and infrastructure issues.

The Chinese property firm, Delonix Group, has committed an investment of 500 billion rupiah ($33 million) into the complex comprising hotels and offices. Widodo, popularly known as Jokowi, believes this pioneering investment will inspire confidence in other foreign investors to participate in the project.

Although Delonix has not commented, the government has emphasized the importance of foreign investment to complete the capital's development. The Nusantara project has previously secured $1.3 billion from a consortium of Indonesian companies, with further investments expected. President-elect Prabowo Subianto will continue overseeing the project's progress after taking office on October 20.

(With inputs from agencies.)