As plans by Indonesia's president to build a new $32 billion capital city on Borneo island slowly start to take shape, the once sleepy settlement of Sukaraja is being rapidly transformed.

Headman Rizki Maulana Perwira Atmadja, 38, said land prices around his village — 10 kilometers from where a presidential palace is being built — had jumped fourfold. Some farmers had "suddenly bought a new car" after selling part of their palm or rubber plantations, he said.

His own business, a guest house and a cafe in front of palm trees, has also thrived with an influx of workers, Rizki said. He has rented out rooms for construction workers, while several nearby homes have been turned into shops.