Indonesian President Joko Widodo stressed that it is important for the two neighbours to explore new areas of economic growth. - The Straits Times/ANN
SINGAPORE, March 17 (Reuters): Singapore and Indonesia will work together on developing renewable energy, their leaders announced on Thursday (March 17).
The agreement was among several memorandums of understanding signed by Singapore Prime Minister Lee Hsien Loong and visiting Indonesian President Joko Widodo, including Singapore sharing knowledge that could support the development of Indonesia's new capital Nusantara.
The Straits Times, meanwhile, reported that Indonesia also plans to build first-class hospitals and universities in its new capital city that is being developed in Borneo, and President Joko Widodo hopes Singapore investors will partner his country on this front.
Speaking to The Straits Times on Wednesday ahead of his meeting with Prime Minister Lee Hsien Loong in Singapore for their regular leaders’ retreat on Thursday, Mr Widodo outlined his plans for the flagship project, known as Nusantara.
The development is envisioned as a sustainable, smart city to relieve Jakarta’s overcrowding and congestion issues. Some government ministries and institutions will be relocating there in phases from 2024.
Widodo stressed that it is important for the two neighbours with “very long and close relations” to explore new areas of economic growth, especially after the Covid-19 pandemic.
“Singapore is the most important partner for Indonesia,” he said. “The relationship between Singapore and Indonesia is very good and must be continued and improved in the future.
“We hope investments in Nusantara can become the focus.”
The 2,561 sq km project, about three times the size of Singapore, is estimated to cost 466 trillion rupiah (S$41 billion). The state will bear 20 per cent of the costs, while Indonesia hopes the private sector will foot the rest.
Nine hospitals and seven universities, some involving foreign partnerships, have expressed an interest in establishing a presence there so far, the President said.
With a broad smile and a twinkle in his eye, Widodo said he hopes Singapore hospitals such as Mount Elizabeth and Gleneagles, and its universities, will do the same, dangling a reminder about the various incentives which have been prepared, including tax holidays and the provision of longer land rights.
“Indonesia’s economy is also in a good position. There are many potentials that can be explored,” he said in an exclusive interview with ST at the presidential palace in Jakarta over a nasi padang lunch.
Infrastructure such as the presidential palace and government buildings in Nusantara is expected to be ready by the second quarter of this year, after which investors could start building hospitals, universities and hotels, he said.
Widodo also acknowledged that the project has its challenges and speed bumps. “We want to move quickly, but land clearing takes time.”
The Indonesian leader, better known as Jokowi, said he planned to speak about the development of the new capital at the leaders’ retreat.
His plan to invite a large group of Singapore investors to attend a presentation on the capital fell through “because things on the ground are not ready yet”.
