Delegation Explores Indonesian Opportunities

Last week a large group of government officials and businessmen from Singapore arrived on a visit to explore opportunities in Indonesia’s new capital city, in what is part of a series of roadshows the country plans to carry out to market the project.

The Ministry of Investment organized the three-day event, from 30 May 30 to 01 June, involving 95 delegates from 69 Singaporean companies. The delegation consisted of officials from the Singapore Government, as well as those in fields such as energy, transport, logistics, property and finance.

The trip is a follow-up to the leaders’ retreat between the two countries held in Singapore in March this year. During that meeting between Indonesian President Joko Widodo and Prime Minister Lee Hsien Loong, signed six agreements, covering emerging areas such as the digital economy, sustainability and human capital development, as well as traditional areas such as security, health and finance.

Referring to those agreements, Mr Widodo said he welcomed the outcome of the retreat and noted the interest among Singapore investors in the development of Nusantara.

The aim of the three-day trip, titled Singapore Mission to Nusantara, was to help Singapore businesses understand the potential opportunities that await them in the new capital that is under construction in East Kalimantan. Nusantara is the largest project in South-east Asia, with a value of up to US$32 billion (S$43.3 billion). The 2,561 sq km project, about three times the size of Singapore, was announced three years ago by Mr Widodo.

As we reported in our article in March:
– Balikpapan is the seaport city for East Kalimantan, located on the east coast of Borneo.
– An airport located in Penajam, will serve as the new international airport to Nusantara.
– A planned toll road will be built connecting the government central area to the airport.

The group were welcomed to the site of the project on Wednesday last week by Mr Luhut Pandjaitan, Coordinating Minister for Maritime Affairs and Investment and chairman of a taskforce working on the new capital.

Some 17 countries are currently involved in the development of the new facilities, and Indonesia has already hosted delegations from Korea, Japan, and Switzerland who have visited Nusantara to observe the progress and explore investment opportunities. But Mr Luhut on Wednesday stressed that Singapore is an important partner for the project.

The latest data from the Nusantara Capital Authority (OIKN) shows that 167 investors have sent letters of intent to participate in the development of Nusantara.

The physical progress of the construction of Nusantara has reached 25% and the government is optimistic that the relocation of the new capital city could begin in August 2024, when Indonesia celebrates its 79th anniversary of independence on 17 August next year.

On Wednesday, Mr Widodo revealed the city’s logo, which was chosen based on votes from more than half a million people:

Nusantara Logo

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