The 2,561sq km project, about three times the size of Singapore, is the largest project in South-East Asia, with a value of up to US$32 billion. - Reuters
JAKARTA (The Straits Times/Asia News Network): A delegation of more than 130 government officials and businessmen from Singapore are on a visit to explore opportunities in Indonesia’s upcoming capital, in what is one of the first in a series of roadshows the archipelago plans to carry out to market its massive project.
The trip, a collaboration between different agencies in Indonesia and Singapore, is a follow-up to the Leaders’ Retreat between the two countries in March, Indonesia’s Ambassador to Singapore Suryo Pratomo told The Straits Times.
President Joko Widodo had first mentioned such a visit in an interview with ST in March, ahead of the Leaders’ Retreat in Singapore.
Suryo said the three-day trip, titled Singapore Mission to Nusantara, aims to help Singapore businesses understand the potential opportunities that await them in Nusantara, Indonesia’s new capital city in East Kalimantan.
“The construction of the Nusantara capital city is the largest project in South-East Asia, with a value of up to US$32 billion (S$43.3 billion),” he said on Tuesday.
“For entrepreneurs, this is of course an extraordinary business opportunity, because the government will only build facilities for government buildings and offices, while other investments will be offered to the private sector, both domestic and foreign.”
The 2,561sq km project, about three times the size of Singapore, was announced three years ago by Widodo. The state will bear 20 per cent of the costs, while Indonesia hopes the private sector will foot the rest.
ST understands that the delegation consists of officials from the Singapore Government, as well those in fields such as energy, transportation, logistics, property and finance.
Special arrangements were made for the group, including a one-of-a-kind Garuda Indonesia flight route from Singapore to Balikpapan, the nearest city to the new capital’s site, in order to bypass the usual transit in Jakarta.
The group arrived in Balikpapan on Tuesday and attended a welcome dinner by Public Works and Public Housing Minister Basuki Hadimuljono.
“We appreciate the visit of a large number of businessmen from Singapore,” he said, adding that the programme will help them understand what is being done for the project.
The group were welcomed to the site of the project on Wednesday by Luhut Pandjaitan, Coordinating Minister for Maritime Affairs and Investment, and chair of a taskforce working on the new capital.
During the retreat that Widodo and Prime Minister Lee Hsien Loong had in March in Singapore, 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, were signed.
Referring to the agreements signed, Widodo said he welcomed the outcome of the retreat and noted the interest among Singapore investors in the development of Nusantara.
Lee said Singapore is happy to support Widodo’s vision for a “green” and “smart” Nusantara, and will contribute towards knowledge sharing, joint research and development activities.
Nusantara is scheduled to be inaugurated in 2024, when Indonesia celebrates its 79th anniversary of Independence on Aug 17, and some have questioned the feasibility of the project, given how not all the funding and technology required for the city is ready.
But Indonesia has continued to push on. On Wednesday, Widodo revealed the city’s logo, which was chosen based on votes of more than half a million people.
Suryo on Tuesday said that the delegation on the trip had listened to presentations from officials in-charge of the new capital and had expressed interest to view it personally, so that they can assess the business potential of the project.
“Seeing is believing. By seeing it with their own eyes, entrepreneurs will know that the Nusantara Capital project is not just a hope, but that construction has already begun,” he said.
