Indonesia woos foreign investors to help build new capital
https://www.freemalaysiatoday.com/c...s-foreign-investment-to-help-build-nusantara/
JAKARTA: Over the past two weeks, the Indonesian government has been intensively wooing potential investors to finance the construction of its new capital Nusantara.
The mega project is set to be completed in 2045.
While the existing capital Jakarta is located in Java, the country’s most populous island, the new capital will be built in an area covering 256,142 hectares in Kalimantan.
Yesterday, head of Nusantara authority Bambang Susantono, met with former British prime minister Tony Blair in Jakarta, in the hopes that Britain “can help develop the new capital as it offers a lot of potential for investors”.
Susantono has invited Blair to visit Kalimantan this September to view the progress of Nusantara’s construction.
On Tuesday, Indonesian energy and mineral resources minister Arifin Tasrif paid a visit to German-based energy company Siemens Energy in Munich.
He said the company is interested in developing Nusantara’s renewable energy sector, including building education facilities to support human capital expansion in the region.
On Monday, coordinating minister for maritime affairs and investment Luhut Binsar Pandjaitan invited the Dutch government and business players to invest in Nusantara during his visit to Den Haag, the Netherlands.
He met with Mark Harbers, the Dutch infrastructure and water management minister to propose green economy investment in Nusantara through a blended finance programme.
“Indonesia and the Netherlands have long historical ties; this will thus strengthen our bilateral cooperation,” Xinhua quoted Pandjaitan from a press release yesterday.
Indonesia’s Nusantara mega project requires funds of at least 501.56 trillion rupiahs (about US$35 billion) according to its national development planning agency.
The first phase of the project development will run until 2024.
Previously, Japan’s SoftBank Group was reported to be ready to invest no less than US$30 billion for the construction of the new capital, but pulled out from the plan in March.
Pandjaitan said he had already approached Saudi Arabia, saying that the country “will invest a very large amount”.
He said the UAE government had set aside US$20 billion through the Indonesian Investment Fund for Nusantara’s construction.
Separately, Indonesian investment minister Bahlil Lahadalia spoke with Singaporean trade and industry minister, Gan Kim Yong in Jakarta about possible investments from Singapore to develop smart cities, a green industry and digital economy in Nusantara.
Last week, presidential chief of staff Moeldoko met with Ann-Mari Kemell, Finnish state secretary to the economic affairs minister in Jakarta, saying Finland had expressed its interest to help Indonesia develop Nusantara into a green and environmentally friendly city.
Indonesian finance minister Sri Mulyani Indrawati explained recently that foreign investors had two options for investment schemes involving projects in Nusantara.
“First, the investors can join as shareholders. Second, the investors can be creditors and only lend us the money. All future investors are free to choose any of the options they think can benefit them the most,” the minister told reporters.
Indrawati stressed that foreign investors are important in Nusantara, because Indonesia could not afford to cover all the costs involved with its state budget.
“Our state budget will mainly go to infrastructure construction, such as bridges and roads,” she said
https://www.freemalaysiatoday.com/c...s-foreign-investment-to-help-build-nusantara/
JAKARTA: Over the past two weeks, the Indonesian government has been intensively wooing potential investors to finance the construction of its new capital Nusantara.
The mega project is set to be completed in 2045.
While the existing capital Jakarta is located in Java, the country’s most populous island, the new capital will be built in an area covering 256,142 hectares in Kalimantan.
Yesterday, head of Nusantara authority Bambang Susantono, met with former British prime minister Tony Blair in Jakarta, in the hopes that Britain “can help develop the new capital as it offers a lot of potential for investors”.
Susantono has invited Blair to visit Kalimantan this September to view the progress of Nusantara’s construction.
On Tuesday, Indonesian energy and mineral resources minister Arifin Tasrif paid a visit to German-based energy company Siemens Energy in Munich.
He said the company is interested in developing Nusantara’s renewable energy sector, including building education facilities to support human capital expansion in the region.
On Monday, coordinating minister for maritime affairs and investment Luhut Binsar Pandjaitan invited the Dutch government and business players to invest in Nusantara during his visit to Den Haag, the Netherlands.
He met with Mark Harbers, the Dutch infrastructure and water management minister to propose green economy investment in Nusantara through a blended finance programme.
“Indonesia and the Netherlands have long historical ties; this will thus strengthen our bilateral cooperation,” Xinhua quoted Pandjaitan from a press release yesterday.
Indonesia’s Nusantara mega project requires funds of at least 501.56 trillion rupiahs (about US$35 billion) according to its national development planning agency.
The first phase of the project development will run until 2024.
Previously, Japan’s SoftBank Group was reported to be ready to invest no less than US$30 billion for the construction of the new capital, but pulled out from the plan in March.
Pandjaitan said he had already approached Saudi Arabia, saying that the country “will invest a very large amount”.
He said the UAE government had set aside US$20 billion through the Indonesian Investment Fund for Nusantara’s construction.
Separately, Indonesian investment minister Bahlil Lahadalia spoke with Singaporean trade and industry minister, Gan Kim Yong in Jakarta about possible investments from Singapore to develop smart cities, a green industry and digital economy in Nusantara.
Last week, presidential chief of staff Moeldoko met with Ann-Mari Kemell, Finnish state secretary to the economic affairs minister in Jakarta, saying Finland had expressed its interest to help Indonesia develop Nusantara into a green and environmentally friendly city.
Indonesian finance minister Sri Mulyani Indrawati explained recently that foreign investors had two options for investment schemes involving projects in Nusantara.
“First, the investors can join as shareholders. Second, the investors can be creditors and only lend us the money. All future investors are free to choose any of the options they think can benefit them the most,” the minister told reporters.
Indrawati stressed that foreign investors are important in Nusantara, because Indonesia could not afford to cover all the costs involved with its state budget.
“Our state budget will mainly go to infrastructure construction, such as bridges and roads,” she said
