The Indonesian government has reportedly set aside Rp40.6tn ($2.7bn) in its 2024 budget for its new capital city, Nusantara, in East Kalimantan on the island of Borneo.

The amount will support essential features related to the construction of the new city, including the presidential office, and apartment blocks for workers, reported Reuters.

Speaking at a news conference, Indonesian Finance Minister Mulyani Indrawati was quoted as saying: "Supporting infrastructure [for the project] will be finished in 2024."

The minister stated that the public works and housing ministry will receive Rp35tn of the Rp40.6tn from the 2024 budget. This funding will mainly be used for the construction of infrastructure and homes for civil personnel involved in the development.

In 2019, the country's officials revealed their plans to establish Nusantara as Indonesia’s new administrative capital.

The to-be capital will replace the current capital Jakarta and be built in phases.

The second phase of Nusantara’s development is planned to take place from 2024 to 2029, the third phase between 2029 and 2035, the fourth phase from 2035 to 2039, and the fifth phase from 2040 to 2045.

The city is expected to be completed in 2045.

The government has already spent Rp32tn to construct essential infrastructure such as a dam and a toll road for the project.

Public Works and Housing Minister Basuki Hadimuljono was quoted as saying: “Four coordinating ministry’s offices, the presidential palace will be complete next year, while the field for flag-raising ceremony next year will be complete in July.”

Earlier in March this year, the country's officials broke ground in the east Borneo forest to construct Indonesia’s new capital city.