Indonesia’s Widodo lauds Chinese funding for Nusantara but investments still ‘far from ideal’
Analysts say ‘relatively small’ investment may be new strategy to secure more modest funding, attract expansion opportunities across Indonesia
Indonesia’s outgoing President Joko Widodo has landed the first foreign investment for his US$33 billion capital relocation project from a Chinese developer, giving a symbolic boost to his beleaguered legacy project, which has struggled with delays and funding shortfalls.
In a groundbreaking ceremony in Nusantara on Wednesday, Widodo announced Chinese property developer Delonix Group would build a 500 billion rupiah (US$33 million) mixed-use area which is set to house a hotel, serviced flats, offices and commercial areas.
Widodo called the firm the “pioneering foreign company investing in the new capital”, stating that its investment would bring “confidence in other investors” to also enter the project.
“Foreign investments are starting to arrive, which gives us confidence that Nusantara is an attractive location for investment,” he said.
Two more foreign investors announced partnerships with local firms in Nusantara on Wednesday, including a Russian developer planning to construct a 300 billion rupiah luxury resort and an international school affiliated with Australia.
Dedi Dinarto, lead Indonesia analyst at public policy advisory firm Global Counsel, said while the new investments marked a milestone for the incumbent president, they were still “far from ideal”.
