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Sarawak Open to Doing Business with Indonesia’s New Capital

Jayanty Nada Shofa
February 3, 2026 | 5:28 pm
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Then-President Joko
Then-President Joko "Jokowi" Widodo and his successor Prabowo Subianto check on the progress of the new capital project Nusantara on Aug. 12, 2024. (Photo Courtesy of Presidential Press Bureau)

Jakarta. Sarawak Premier Abang Johari Openg said Tuesday that the Malaysian state would be happy to partner with Indonesia’s new capital Nusantara, while being confident that its construction will boost Borneo’s economic growth.

Indonesia wants to make Nusantara its political capital by 2028. Indonesia has also opened the doors for foreign investors to participate in the $32 billion megaproject. Speaking at the 2026 Indonesia Economic Summit, Abang Johari described Nusantara as something beyond a "national milestone for Indonesia”. The Malaysian politician even called the city a “significant catalyst for economic growth across the entire island". Later that day, the Jakarta Globe asked Abang Johari whether Sarawak had cooperation in mind for Nusantara development. Abang Johari signaled an opportunity for businesspeople from both sides to team up.

“As a new city that is being developed, you need a lot of economic input to build Nusantara. Being a very close neighbor, we collaborate,” Abang Johari told the Globe on the margins of the conference.

“We have our chambers of commerce and business communities. They can engage and help each other to develop your capital [Nusantara].”

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He did not go into details on what sort of expertise or investment Sarawak's firms could offer.

Sarawak Open to Doing Business with Indonesia’s New Capital
Sarawak Premier Abang Johari Openg (center) holds a press briefing on the sidelines of the 2026 Indonesia Economic Summit in Jakarta on Feb. 3, 2026. (JG Photo/Jayanty Nada Shofa)

Abang Johari's transportation minister, Lee Kim Shin, had already checked out Nusantara in person last December. In a meeting with the city's authority, Lee talked of how Sarawak's airline Air Borneo could have direct links to Nusantara. He also unveiled Sarawak's plans to “construct a railway that could link Indonesia, Malaysia, and Brunei Darussalam”. Not long after Sarawak made its railway pitch, senior Indonesian government official Odo RM Manuhutu told the press that Jakarta would “weigh in the pros and cons”, but no decision had been made.

Just last month, President Prabowo Subianto made his first overnight stay in Nusantara since assuming power in October 2024. His visit signaled his intentions of wanting to continue the project. Not long ago, his veep Gibran Rakabuming revealed that 4,000 civil servants would move to the capital this year, while citing “good progress” in the construction. 

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