Investors from the United Kingdom to Japan interested in developing new Indonesian capital

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JAKARTA (The Jakarta Post / ANN): At least five foreign investors have expressed interest in developing Indonesia’s new capital in East Kalimantan, said a minister, while the government seeks greater private sector participation in financing the relocation plan .

The National Minister of Development Planning, Soeharso Monoarfa, said that the potential investors were from the United Arab Emirates (UAE), the United States (USA), the United Kingdom (United Kingdom), Japan and Germany.

“Each (investor) has offered their respective capabilities and technologies. (The Japanese conglomerate) SoftBank, for example, wants to provide autonomous vehicles, “Soeharso said in the Presidential Office on Wednesday (January 15), but did not mention any details about the German investor.

During a recent visit to the United Arab Emirates, President Joko ‘Jokowi’ Widodo invited Crown Prince Sheikh Mohammad Zayed Al Nahyan to join the advisory board for the relocation project.

The coordinating minister of Maritime Affairs and Investments, Luhut Binsar Pandjaitan, who accompanied Jokowi on the visit, said on January 14 that former UK Prime Minister Tony Blair and SoftBank Group CEO Masayoshi were also expected They are, join the advisory board, as quoted by kompas.com.

The presence of internationally renowned figures on the steering committee was expected to attract more foreign investment to develop the new capital, Soeharso said.

Jokowi’s visit to the United Arab Emirates also brought Indonesia closer to establishing its own sovereign wealth fund (SWF), a plan for which the United Arab Emirates, SoftBank and the United States International Development Finance Corporation (IDFC) ) had expressed their support.

Soeharso added that the SWF could provide financial capital for the relocation project, as well as other infrastructure projects.

The government announced in August 2019 that the Indonesian capital would move to an area of ​​256,000 hectares on horseback between the regencies of North Penajam Paser and Kutai Kartanegara in East Kalimantan, citing the need to ease the burden of Jakarta and distribute the development in a manner more equitable throughout the country. country.

The Ministry of Public Works and Housing will provide basic infrastructure in the new capital, particularly the new presidential palace and other government buildings in the downtown area of ​​5,600ha.

The government would invite the private sector to help develop non-public infrastructure through a public-private partnership (PPP) or direct investment, Jokowi said at a cabinet meeting on Wednesday.

The president hoped that this would reduce the costs of moving capital, which he estimated would be around Rp100 billion (US $ 7.29 billion).

Jokowi’s estimate is considerably lower than the initial figure of Rp466 billion. – The Jakarta Post / Asia News Network

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