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Indonesia Spends $2.69 Billion for Development of Future Capital Nusantara

Alfida Rizki Febrianna
January 6, 2025 | 5:25 pm
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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. The government spent Rp 43.4 trillion ($2.69 billion) from the State Budget in 2024 for the development of Indonesia's future capital, Nusantara, accounting for 97.3 percent of the Rp 44.5 trillion ceiling.

Deputy Finance Minister Suahasil Nazara said the funds were directed towards key infrastructure projects, including the construction of buildings in the State Palace area, ministry offices, the Nusantara Authority building, as well as housing for Civil Servants, hospitals, and transportation facilities like toll roads, bridges, and airports.

Additionally, the budget supported the development of the Sepaku Semoi Reservoir area and flood control measures around Nusantara.

Suahasil highlighted the positive impact of the development on East Kalimantan's economic growth, making it the fastest-growing province in Indonesia. "Kalimantan's economy grew by 4.5 percent in 2022, 6.2 percent in 2023, and remained at 6.2 percent  in the third quarter of 2024, despite pressures on commodity prices like coal and CPO," he said.

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The open unemployment rate in East Kalimantan also dropped to 5.14 percent in 2024, with 129,000 new jobs created, bringing the total workforce to 1.98 million.

"This development is the result of collaboration between the State Budget and the Regional Revenue and Expenditure Budget," he added.

From 2022 to 2024, a total of Rp 75.8 trillion has been allocated for Nusantara's development, with Rp 5.5 trillion in 2022, Rp 27 trillion in 2023, and Rp 43.4 trillion in 2024. This progress has had a significant positive impact on both East Kalimantan and the broader Kalimantan economy.

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