Foreign Investments Surge in Indonesia's New Capital Nusantara

Foreign investment is gaining momentum in Indonesia's new capital, Nusantara, as major projects from Chinese and South Korean firms kick off. PT Star Bright International Investment, a Chinese company, has commenced construction on a Rp 1.25 trillion (approximately $84 million) integrated development project in the Core Government Area of Nusantara, with completion expected by the end of 2026.

According to Basuki Hadimuljono, the Head of the Nusantara Authority, the project's strategic location allows for views of key government buildings, including the Presidential Palace and legislative areas, which are also under construction. He noted that the location is very special and that they plan to complete the entire area by 2028.

“This location is very special. From here, we can see the Istana Negara and the judicial and legislative areas that are currently being built.”Basuki Hadimuljono, Head of the Nusantara Authority

The project will span 15,501 square meters and will feature residential units, retail spaces, restaurants, and office areas, all designed with sustainable development principles. Lu Keming, the CEO of PT Star Bright International Investment, expressed confidence in the potential of Nusantara, stating that he has seen city developments from the ground up and believes IKN will become a beautiful city because it is being built from scratch. He added that their team from China is also interested in investing in the hospitality and tourism sectors.

“I believe IKN will become a beautiful city because it is being built from scratch.”Lu Keming, CEO of PT Star Bright International Investment

In addition to the Chinese investment, PT Dian Jaya Indonesia, a subsidiary of South Korean firm Dian Development Co., Ltd., is set to invest Rp 1.2 trillion (approximately $81 million) in the construction of apartments and office spaces in the same area. Basuki confirmed that this investment is expected to be realized this year, further enhancing the foreign investment landscape in Nusantara.

The presence of these international investors is seen as a sign of growing confidence in the development of Nusantara as a global investment destination. Basuki mentioned that the arrival of these delegations reflects the high interest of international investors in opportunities in Nusantara, reinforcing its position as a trusted investment destination.

“The arrival of these delegations reflects the high interest of international investors in opportunities in Nusantara.”Basuki Hadimuljono, Head of the Nusantara Authority

As Nusantara continues to attract foreign capital, the Indonesian government aims to create a vibrant new capital that not only alleviates Jakarta's overpopulation issues but also serves as a model for sustainable urban development.