So far, not a single investment agreement has been signed as investors worry concerning the feasibility and way forward for the project within the face of the expected transfer of power in next 12 months’s general and presidential elections.
He said he expected the town to be financed mainly by the private sector, which is why the federal government introduced a set of incentives in March.
Bambang Susantono, chairman of the Nusantara Authority, said at the identical forum that financing the project can be profitable, citing a possible return on investment in the town’s power system of 11% to 13%.
About 16,000 government, military and police officials are expected to maneuver to Nusantara by next 12 months. Construction of presidency buildings is underway, but as of March, only temporary housing estates for employees might be seen there.
