President Joko Widodo attended the groundbreaking ceremony, praising Dellonix as a pioneering foreign investor and expressing hope that it would inspire confidence in other potential investors. The company is investing 500 billion rupiah ($31.7 million) to build hotels, shopping centers and office buildings in Nusantara.
The Indonesian government estimates the new capital's construction will cost $32 billion, with 20 percent funded by the state and the rest through private investments. Despite initial optimism about potential investments from SoftBank and BlackRock, the project has struggled to secure significant foreign funding, receiving only $1.3 billion from Indonesian business consortiums so far.
Nusantara is being built on Kalimantan island, 1,200 kilometers from Jakarta.
President Widodo's plan to inaugurate Nusantara as Indonesia's new capital before his term ends next month has been delayed due to funding challenges. The project will be handed over to President-elect Prabowo Subianto, who has shown less enthusiasm for the new capital, describing it as a long and difficult process.
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