KONTAN.CO.ID - JAKARTA. Indonesia will offer generous incentives, including a 30-year tax break, for companies investing in a US$ 32 billion project to build a new capital city in the country called Nusantara. An official said late on Tuesday.

Bambang Susantono, head of the Nusantara National Capital Authority, made the comments at a gathering with hundreds of local and foreign investors in the current capital Jakarta.

Construction of a dam and roads has started at the site of the new capital, he said, currently an underdeveloped area fringed by Borneo's vast rainforest.