In a historic moment for Indonesia’s Nusantara development plan, the president, Jokowi, tendered the first foreign direct investment in the new capital. The construction was officially launched on Wednesday in a ceremony involving a landmark project that is being funded by a Chinese property company. This event is a landmark in the way that Indonesia has sought to market its brand new city to the rest of the world.

The project, which is led by Del which is a major Chinese property company, was planned to be the foundation of foreign participation in Nusantara’s development. Though there are no clear specifics about investment details, it can be considered as believe in Indonesia’s concept and idea of new capital. The attendance of President Jokowi at the ceremony reveals the governments seriousness and seriousness in the project and the economy of the future.

Currently under construction is Nusantara in East Kalimantan on the island of Borneo, which with all the necessary infrastructure will replace Jakarta as the Indonesian capital. Many problems of the present capital are accompanied: congestion, pollution, and subsidence caused by the uncontrolled extraction of groundwater. On this way Indonesia aims to raise the attractiveness of Nusantara for foreign and domestic capital investment and create an international city that will become the engine of the regional development.

The groundbreaking ceremony takes place at the right time given that Indonesia is currently on the lookout for FDI across respective industries. they have undertaken number of reforms and incentives to make the business environment much easier for the international companies. These efforts seem to have started yielding fruit since the investment made by the Chinese firm in the new capital project.

But at some point, the Nusantara civilization has its fair share of problems as it progressed. Opposition to the establishment of the new city is due to the fact that it will be constructed in Borneo’s forested regions;the expanses of building the new city is also very expensive. The government has responded by restating it will promote sustainable practices in the new capital city as well as perform a long-run economic impact analysis of the new capital.

In this first foreign investment construction project, everyone will hope and watch how Nusantara’s future development will be, and can it gather more international capital. The positive outcome of this first attempt may bring forth more overseas involvement into the development of the new capital, which could speed up the construction timeline of the city and overall Indonesia’s growth.

The groundbreaking ceremony also demonstrates a developing trade relations between Indonesia and China even if the latter experienced a conflict over the South China Sea. With Indonesia looking to maintain high economic growth rates and play a much more active role in the international economy, strategic cooperation with major economic partners, such as China, is expected to remain an essential element of the Indonesian development model.

Now that this achievement has been launched, the Indonesian government will shift its efforts to maintaining the momentum and using this success to invite other international investors to invest in Nusantara. The next several months and years will decide whether the new capital is capable of becoming the sustainable and technological hub that would help Indonesia create enough value to sustain in the wider future.