Ciputra will build homes and a hotel in the new Indonesian capital.

Indonesian construction company Ciputra Development Tbk plans to build a residential complex, a hotel and a golf course in the country's new capital on Borneo island, a company director said Monday.

Southeast Asia's largest economy is now building its new capital, Nusantara, to replace the overcrowded Jakarta.

However, Indonesia is having difficulty attracting foreign investors to the $32 billion project despite issuing incentives and promoting it at international events.

Ciputra is currently awaiting the government's decision on the land cost and plans to conduct a feasibility study later this year, said company director Budhiarsa Sastravinatha, without disclosing the planned investment amount.

The company will develop the convention center next to residential areas, a hotel and a golf course on up to 300 hectares (741 acres).

The government plans to relocate 16,000 civil servants, police and military personnel to Nusantara starting next year. Construction of the presidential palace, government offices and some apartments has already begun.

Indonesian hospital operator Medikaloka Hermina last month announced a plan to build a hospital in Nusantara, becoming one of the first private sector investments in the new capital.