President Joko Widodo directs collaboration between Nusantara Capital City Authority’s Business Entity and Indonesia Investment Authority to attract foreign investment.

President Joko Widodo has instructed the Nusantara Capital City Authority’s Business Entity (BUO IKN) to partner with the Indonesia Investment Authority (INA) in enticing foreign investors to the new capital, as confirmed by BUO IKN president director Bapak Boyke Soebroto following a meeting with President Jokowi at the Presidential Palace in Jakarta on 5 February 2024.

Pak Soebroto disclosed that BUO IKN would work alongside INA to identify areas within Nusantara where foreign investors would invest or embark on development projects, leveraging INA’s credibility among international investors.

As the master developer, BUO IKN’s role involves preparing infrastructure and facilities, including land allocation, to facilitate potential investments, Pak Soebroto emphasized.

The directive from President Jokowi prompts BUO IKN to engage in technical discussions, including business-to-business (B-to-B) schemes, with INA and foreign investors, to further advance collaboration and investment prospects.

With the central government core area (KIPP) of Nusantara covering approximately six thousand hectares, the mapping process has advanced to the detailing stage, outlining specific regions suitable for investment and project development, Pak Soebroto elaborated.

BUO IKN awaits investment proposals from foreign investors and stands ready to allocate suitable areas within Nusantara’s core region to accommodate various ventures, ranging from infrastructure to healthcare facilities.

Reports indicate that OIKN has scrutinized 350 letters of intent for Nusantara’s development, with the initial phase requiring an estimated investment of around IDR47.5 trillion (US$3 billion), predominantly sourced from private investors contributing IDR35.9 trillion (US$2.2 billion) and state-owned enterprises (SOEs) contributing Rp8 trillion (US$511.6 million).

Source: Antara News