Indonesia begins first phase of new capital city development project
Indonesia’ Ministry of Public Works and Housing (PUPR) has started Phase 1 of the development of its new National Capital City (IKN) Nusantara located on East Kalimantan by signing a 19-package contract worth 5.3 trillion IDR (356 million USD) for 2022.
Nusantara - the new capital city of Indonesia. (Photo: futuresoutheastasia.com)
Jakarta (VNA) – Indonesia’ Ministry of Public Works and Housing (PUPR) hasstarted Phase 1 of the development of its new National Capital City (IKN)Nusantara located on East Kalimantan by signing a 19-package contract worth 5.3trillion IDR (356 million USD) for 2022.
SecretaryGeneral of the Ministry of PUPR Mohammad Zainal Fatah said his ministry plansto develop basic infrastructure at IKN Nusantara from 2022 – 2024 with a totalbudget of 43.73 trillion IDR.
The19 packages include six in irrigation and flood works worth 42.8 billion IDR;eight toll roads costing 4.59 trillion IDR; four resettlement areas estimatedat 111.9 trillion IDR; and a housing project costing 667 billion IDR.
Acontract for another 4 trillion IDR work package is expected to be inked onSeptember 5.
IndonesianPresident Widodo first announced the plan to relocate the capital from Java,the country’s most populated island, in April 2019.
Monthslater, Widodo announced the districts of Penajam Paser and Kutai Kertanegara inEast Kalimantan province to be the site of the new capital city.
Withan area of about 127,000 sq.km, East Kalimantan is home to more than3.7 million people.
Thenew capital will serve as the centre of government, while Jakarta, the currentcapital city, which is home to more than 10 million people, will remain thebusiness and 𓂃economic hub of Indonesia, Southeast Asia's biggest economy./.
The United Arab Emirates (UAE) will fund the new state capital (IKN) project in Indonesia’s East Kalimantan through an investment of 10 billion USD, according to Investment Minister and head of the Indonesian Investment Coordinating Board (BKPM) Bahlil Lahadalia.
The head of Indonesia’s Nusantara Capital City (IKN) Authority, Bambang Susantono, has recently said that the new capital will be home to about 1.7 million to 1.9 million people by 2045.
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Nusantara - the new capital city of Indonesia. (Photo: futuresoutheastasia.com) 
