In line with Indonesia’s aspiration to relocate its capital city to the East Kalimantan province, currently, the development of infrastructure for the new capital city has commenced.[2] Upholding the concept of a green, sustainable city, the new capital is set out to appropriate 75% of its area for green, open spaces.[3] Residential, institutional, and commercial buildings are aimed to be constructed using environmentally friendly methods.[4] Through the green and sustainable city concept and infrastructure, Indonesia aims to implement the Environment, Social, and Governance (“ESG”) principle in the development of the Nusantara Capital City (“IKN”).[5]
The construction of the new capital city, however, requires a substantial amount of cost, which is estimated to reach $35 billion.[6] The government has contributed as much as 20% of the funding, whereas the remaining 80% is aimed to be obtained from foreign investors.[7] The five prioritized industries for the development of IKN are natural resource-based industries, basic industries, medium-high technology industries, sustainable consumer goods industries, and innovation and research-based industries.[8]
