Billionaires plan major new city for 2060

Indonesian billionaires are embarking on an ambitious $16 billion project to transform a formerly impoverished area of North Jakarta into a sprawling urban and tourist hub by 2060.

Known as PIK 2, the project aims to include a range of attractions such as a theme park, a Formula 1 racetrack, and a safari park while integrating a port to bolster international tourism.

Developed through a collaboration between the Agung Sedayu Group, headed by Sugianto Kusuma, and the Salim Group, led by Anthoni Salim. The two companies had also previously managed the PIK 1 area project, another real-estate endeavor.

The Agung Sedya Group describes the project as an, “integrated city with more significant potential and more comprehensive range of benefits and facilities to improve quality of life,” on its website.

Newsweek has reached out to the Salim Group via social media for comment and the Agung Sedayu Group via email for comment.

Both developers are members of a local elite group dubbed the “Nine Dragons,” which has significant influence in Indonesia’s business landscape, according to Bloomberg.

Located just seven minutes from Jakarta’s Soekarno-Hatta International Airport, there are plans to build an Eco-Park in PIK 2, as well as safari tours, golf courses, mangrove tours, international racing circuits and ecotourism.

Its developers are also seeking international partnerships, with companies in China and Singapore approached to assist in building the port facility.

North Jakarta, once characterized by poverty, is being reimagined as an enclave of gated communities, golf courses, and luxury developments.

The transformation represents a broader trend in Indonesia, where significant infrastructure investments are reshaping key regions. PIK 2 has already garnered interest for its potential to host major events such as Formula 1 races, a strategic move aimed at capturing global attention.

The project comes amid Indonesia’s ongoing plans to relocate its capital city from Jakarta to East Kalimantan, an effort to alleviate overcrowding and address sinking infrastructure in the existing capital.

Announced by then-President Joko Widodo in 2019, the new capital, Nusantara, is expected to cost $35 billion and be completed by 2045. Nusantara is a city currently under construction in East Kalimantan on the island of Borneo.

This historic move is driven by the severe environmental and infrastructural challenges facing Jakarta, including chronic flooding, crippling traffic congestion, and rapid land subsidence caused by excessive groundwater extraction and rising sea levels. Nearly 40 percent of Jakarta now lies below sea level, making the relocation essential for the country’s long-term stability and development.

The name Nusantara, meaning “archipelago” in Javanese, reflects Indonesia’s diverse and expansive geography. Located about 1,200 kilometers from Jakarta, Nusantara was chosen for its central position within the country, symbolizing the government’s effort to promote more balanced development across the archipelago.

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