Indonesia’s new capital breaks ground

Construction for Nusantara is set to start this year

The new capital will be located in the Indonesian part of Borneo just 870 miles away from Jakarta. ArifKurniawanBPN/Shutterstock

Indonesia is moving its capital out of Jakarta and construction plans have been unveiled. According to design magazine Dezeen, the construction of 184 apartment blocks in Nusantara would mark the first stage of the new capital’s development. Beginning with housing helps with the shift of the population of the city.

The city will be located in the Indonesian part of Borneo just 870 miles away from Jakarta. It is planned to start off with a population of 500,00, filling up the state palace with the members of the house of representatives and government offices alongside 14,500 civil servants, military, and police.

Nusantara National Capital Authority (NNCA) Head Bambang Susantono told Reuters that the construction is set to begin in the second quarter of 2023. With the essential infrastructure already starting, the government is planning on relocating some of its administrations and civil servants by 2024. Around IDR41 billion (USD2.7 billion) will be spent for the population’s shift into the capital, as well, with Susantono having negotiated with three private developers for the housing project.

Global Construction Review, a publication by The Chartered Institute of Building (CIOB), reported that the city’s 6.6-hectare zone would have multiple buildings for ministries and state purposes, alongside the housing and the State Palace. Overall, the project is projected to cost about IDR486.5 billion with 80 percent of its funds coming from private investments. Indonesian President Joko Widodo plans for the government administration’s relocation in time for Independence Day on the 17th of August 2024.

The Property Report editors wrote this article. For more information, email: [email protected].