Indonesia aims to kickstart President Joko Widodo's ambitious plan to relocate the capital city to the island of Borneo by offering property contracts to investors this year and starting construction work on a state palace.
The $US33 billion ($A43 billion) plan was put on the backburner last year due to the pandemic but National Development Planning Minister Suharso Monoarfa says accelerating the project now should help a post-crisis recovery of Southeast Asia's biggest economy.
The plan is, however, contingent on the success of Indonesia's COVID-19 vaccination drive.
"If we can vaccinate one million people per day ... I think we have a strong reason to get on with the new capital city," Suharso said on Thusday.
Indonesia wants to inoculate 70 million people by at least July, or about 39 per cent of targeted vaccine recipients, in order to remove some restrictions and allow construction work to commence, he said.
In the period from mid-January to Wednesday, authorities had fully vaccinated 2.7 million people.
The president, known as Jokowi, announced his plan to build a new capital in 2019, with civil servants due to move from congested and sinking Jakarta on Java island by the end of his term in 2024.
Suharso said debate on a bill to establish the legal basis for the project will start soon and preparations were underway for private sector contracts to build homes, offices, schools and hospitals in the unnamed city.
The tendered contracts, which could be in a build, lease, transfer form, would be "quite sizable" as the city would be home to at least 200,000 civil servants and their families, he said.
"Foreign investors can join, especially if they partner with domestic players," he said, adding that the government will focus on basic infrastructure and security-sensitive premises.
Japan's Softbank is among foreign companies previously linked to the capital project, which the government has touted as a smart, green city.
The government also plans a ground breaking for a new state palace this year, with one of the proposed designs in the shape of a mythical Garuda bird - the state symbol - spreading its wings.
There have been concerns about the risk of corruption tied to the project, while environmentalists worry about damage to the environment in a forested area that is home to orangutans.
But more recently the criticism has been on the timing given the impact of the pandemic.