Asian Development Bank to assist Indonesia in setting up its new capital

The rather pompous presidential palace in Indonesia’s planned new capital Nusantara

The Asian Development Bank (ADB) will support Indonesia in setting up its planned $32-billion capital city on Borneo island by “mobilising” financing and assessing the project’s environmental and social impacts, the Manila-based developmental lender said in a statement on March 18.

The bank will also help with the design of the new city which will be named Nusantara. However, the ADB did not specify whether it will actively participate in funding the new capital, e.g. by granting a loan for the project

“ADB will share international lessons learned to help NNCA design and fund construction of the new capital,” said senior ADB official Ahmed Saeed, referring to Nusantara National Capital Authority, a government agency in charge of the project headed by Bambang Susantono, a former ADB vice president and former deputy transport minister for Indonesia.

Japan’s Softbank drops out

The bank’s statement followed the decision made by Japan’s SoftBank Group that it would not invest in Nusantara, despite earlier remarks by an Indonesian minister that the group had offered billions of dollars for the project.

Indonesia’s president Joko Widodo has said he wants the government to finance only about a fifth of the cost of the new capital city, and that private and foreign investors should shoulder the rest.

The Indonesia Investment Authority, the country’s s sovereign wealth fund, will invest in the new capital city if it finds the project to be “commercially viable,” Reuters reported earlier.

The Indonesian government aims to start construction from July 2022 starting with the the core government cluster and the presidential palace, and civil servants are expected to move from the current capital Jakarta to Nusantara in 2024. The massive project will be carried out in five phases until 2045.



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[caption id="attachment_38316" align="alignleft" width="300"] The rather pompous presidential palace in Indonesia's planned new capital Nusantara[/caption] The Asian Development Bank (ADB) will support Indonesia in setting up its planned $32-billion capital city on Borneo island by "mobilising" financing and assessing the project’s environmental and social impacts, the Manila-based developmental lender said in a statement on March 18. The bank will also help with the design of the new city which will be named Nusantara. However, the ADB did not specify whether it will actively participate in funding the new capital, e.g. by granting a loan for the project “ADB will share...

The rather pompous presidential palace in Indonesia’s planned new capital Nusantara

The Asian Development Bank (ADB) will support Indonesia in setting up its planned $32-billion capital city on Borneo island by “mobilising” financing and assessing the project’s environmental and social impacts, the Manila-based developmental lender said in a statement on March 18.

The bank will also help with the design of the new city which will be named Nusantara. However, the ADB did not specify whether it will actively participate in funding the new capital, e.g. by granting a loan for the project

“ADB will share international lessons learned to help NNCA design and fund construction of the new capital,” said senior ADB official Ahmed Saeed, referring to Nusantara National Capital Authority, a government agency in charge of the project headed by Bambang Susantono, a former ADB vice president and former deputy transport minister for Indonesia.

Japan’s Softbank drops out

The bank’s statement followed the decision made by Japan’s SoftBank Group that it would not invest in Nusantara, despite earlier remarks by an Indonesian minister that the group had offered billions of dollars for the project.

Indonesia’s president Joko Widodo has said he wants the government to finance only about a fifth of the cost of the new capital city, and that private and foreign investors should shoulder the rest.

The Indonesia Investment Authority, the country’s s sovereign wealth fund, will invest in the new capital city if it finds the project to be “commercially viable,” Reuters reported earlier.

The Indonesian government aims to start construction from July 2022 starting with the the core government cluster and the presidential palace, and civil servants are expected to move from the current capital Jakarta to Nusantara in 2024. The massive project will be carried out in five phases until 2045.



Support ASEAN news

Investvine has been a consistent voice in ASEAN news for more than a decade. From breaking news to exclusive interviews with key ASEAN leaders, we have brought you factual and engaging reports – the stories that matter, free of charge.

Like many news organisations, we are striving to survive in an age of reduced advertising and biased journalism. Our mission is to rise above today’s challenges and chart tomorrow’s world with clear, dependable reporting.

Support us now with a donation of your choosing. Your contribution will help us shine a light on important ASEAN stories, reach more people and lift the manifold voices of this dynamic, influential region.

 

 

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