Nusantara: Indonesia’s bold new capital and China’s rising influence
“As of May 2025, Chinese companies have invested nearly 70 trillion rupiah (US$4.3 billion) in Nusantara. Furthermore, by 26 May 2025, the Nusantara Capital City Authority reported receiving 36 letters of interest from Chinese companies — 32 for Public-Private Partnership (PPP) schemes and four for direct investment.”
“Over the past decade, China has become Indonesia’s second-largest foreign investor, with a combined investment of US$13.9 billion from mainland China and Hong Kong in 2023 alone. From power plants and high-speed rail to nickel smelters, Chinese-backed BRI projects are transforming Indonesia’s infrastructure and industrial landscape.”
“Among the most high-profile examples of BRI involvement is the Jakarta-Bandung High-Speed Railway (HSR), Southeast Asia’s first bullet train, which cost approximately US$7.2 billion to build. Developed under a joint venture between Chinese and Indonesian state-owned firms, the 142-kilometre rail line connects Jakarta and Bandung in just 40 minutes, down from the previous three hours.”
“Technology and digital infrastructure also play a vital role in this partnership. Chinese tech giant Huawei has expressed interest in supporting the development of Nusantara’s ICT ecosystem, which aligns well with the capital’s vision of becoming a tech-driven smart city that leverages artificial intelligence and the internet of things (IoT) for efficient urban governance. Huawei’s participation is expected to strengthen Nusantara’s digital capabilities and create new opportunities for local professionals in the emerging smart city sector.”
https://www.thinkchina.sg/economy/nusantara-indonesias-bold-new-capital-and-chinas-rising-influence