Reuters reports that Indonesia's parliamentary budget committee authorized an additional $1 billion last week to expedite construction of the planned new capital city "Nusantara" in East Kalimantan province on Borneo island. The plan for the new city to be constructed on virgin land surrounded by rainforests depends on private investment for approximately 80% of its estimated $32 billion price tag. According to Reuters, no investment agreement has been signed despite the Indonesian government's heavy promotion of the scheme, which includes huge tax breaks for investors. The latest cash release, according to the chairman of the budget committee, Said Abdullah, will facilitate the president's planned transition into the new presidential palace in June of next year. It is unlikely to be the current president of Indonesia, Joko Widodo, who has championed the new capital scheme, as Indonesian law prohibits him from serving more than two mandates. In February 2024, a general election is scheduled to take place. Earlier this year, the government released $1.47 billion to continue the endeavor. At least 16,000 civil servants, military, and police are expected to move in by the middle of 2024. This includes the presidential palace and ministerial structures. In April of this year, the organization responsible for delivering the city project, Nusantara National Capital Authority, reported that government offices and the presidential palace were 5.8% and 8% complete, respectively.Link di fonte: https://www.globalconstructionreview.com/another-1bn-allocated-for-indonesias-new-capital/ (ICE GIACARTA)

Fonte notizia: Global Construction Review - 14 June 2023