Indonesia plans to start building 184 residential towers in this year’s second quarter to house 14,500 civil servants at the new capital, called Nusantara, it is building in the forests of Borneo.
The work will be procured as a public-private partnership (PPP) and officials are in talks with three private developers, Bambang Susantono, head of the Nusantara National Capital Authority, told Reuters.
Those developers include a consortium of China’s CCFG Corp and Risjadson Brunsfield Nusantara (CCFG-RBN), South Korean firm Korea Land and Housing Corp, and local developer PT Summarecon Agung.
CCFG-RBN is expected to deliver the biggest share of the housing project, worth $2.1bn, Bambang said in a presentation at the World Economic Forum in Davos, Switzerland, reported Reuters.
To to be built on virgin land amid rainforests in East Kalimantan, Nusantara is flagship project of Indonesian President Joko Widodo.
He wants the government moved there in time for 17 August 2024, Indonesia’s Independence Day.
The city’s 6.6-hectare government zone will have buildings for ministries, the State Palace, the House of Representatives, and housing for some 50,000 civil servants and 500,000 residents.
Projected to cost $32bn, the mega scheme will rely on private investment for around 80% of its funding.