Indonesia is seeking to attract approximately $8.4 billion USD in investments for the development of its new capital city, Nusantara, with Samsung C&T among the key participants in a large-scale residential construction project.
Basuki Hadimuljono, an official at the Nusantara Capital City Authority (OIKN), stated on June 8 (local time) that the project is being carried out under a public-private partnership (PPP) model, focusing on residential and road infrastructure development.
Samsung C&T’s construction division is involved in a housing project valued at approximately $395 million USD. Last month, the authority announced that a consortium composed of Samsung C&T and Brantas Abipraya will build 21 apartment buildings as part of the initiative.
A U.S.-based consortium is also planning to construct 20 apartment buildings, with a total investment of around $375 million USD. The consortium includes PJ-IC International, B-Invest, Ozturk Holdings, and the Promec Joint Venture.
Infrastructure developments, including roadworks and a multi-utility tunnel (MUT), are also underway. Five companies from China, Malaysia, and Indonesia are exploring investment opportunities in this segment, with projected investments totaling approximately $4.49 billion USD.
The Nusantara project is aimed at addressing severe overcrowding in the current capital, Jakarta. The overall cost of relocating the capital is estimated at between $29.5 billion and $39.3 billion USD. The Indonesian government plans to finance about 19% of the total, with the remainder expected to come from private investment and PPPs.
