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Indonesia Breaks Ground on Its New Capital City

Indonesia has begun clearing land to build the new city of Nusantara from scratch in a bid to alleviate overcrowding in Jakarta and promote equitable economic growth.

Indonesia has started work on its new capital and is on course to complete the city’s first phase of development by 2024 with government funding, according to the top official overseeing the project.

Eventually, 80% of financing for the $34 billion project will come from the private sector, said Indonesia’s Bambang Susantono in an interview on the sidelines of the World Cities Summit in Singapore. Discussions with investors are ongoing, and Indonesia is likely to consider a bond issuance later on, he said.