Singapore pledges support for Indonesia’s new US$34 billion capital Nusantara

Singapore on Thursday pledged to support Indonesia’s planned new US$32 billion capital on Borneo island as the leaders of the two Southeast Asian nations presided over the signing of multiple pacts including an agreement on joint development of renewable energy during annual talks.

Prime Minister Lee Hsien Loong and President Joko Widodo – popularly known as Jokowi – said in a press conference following their meeting in Singapore’s Istana government complex that both sides agreed to cooperate in “knowledge sharing” and “capacity building” for the new Indonesian capital as construction began.

If all goes to plan, Nusantara – located in eastern Borneo – will transition into becoming Indonesia’s political centre by the end of 2024, replacing Jakarta, the heavily-congested and sinking capital of 10 million people, as the heart of the country.

Lee said that the two countries have also “taken a major step forward to resolve three long-standing issues”, referring to the three landmark agreements that Indonesia and Singapore signed last year during the two leaders’ retreat on the Indonesian island of Bintan, a 60-minute ferry ride from Singapore.