China Emerging as One of the Key Foreign Investors in Indonesia’s New Capital City

FILE - Indonesian soldiers take photos at the 'ground zero', the center of the site of the new capital city 'Nusantara', in Penajam Paser Utara, East Kalimantan, Indonesia, on March 8, 2023. In this NASA Earth Observatory satellite image taken in April 2022, a view of the construction site of the future Indonesian capital city Nusantara on the island of Borneo. In this NASA Earth Observatory satellite image taken in February 2024, a view of the construction site of the future Indonesian capital city Nusantara on the island of Borneo.

Indonesia’s capital, Jakarta, is overcrowded, polluted, prone to earthquakes and often described as the world’s fastest sinking city, due to groundwater extraction and climate change.