STRATEGIC ASSESSMENT. Investment Minister Bahlil Lahadalia on Friday said three major South Korean companies had expressed interest in investing in the construction of the planned capital city of Nusantara, East Kalimantan. According to Bahlil’s presentation, the three companies are the automotive manufacturer Hyundai, the electronic equipment manufacturer LG, and the steel producer Posco.
Investment Minister Bahlil Lahadalia on Wednesday confirmed that several countries have committed to investing in Indonesia’s new capital Nusantara, including the UAE, South Korea, Taiwan, and China. Minister Bahlil also said a number of foreign investors had held a special meeting with President Jokowi to discuss their plan to invest, including Taiwan’s Foxconn and South Korea’s Posco.
Communications and Information Minister Johnny G Plate on Wednesday met with Qualcomm Senior Official Nate Tibbits in San Diego to explore the potential use of Qualcomm technology in the new National Capital’s smart city. Minister Plate said President Jokowi had directed the construction of a new National Capital based on the concepts of a modern, a smart, and an environmentally friendly city. Johnny said that the ministry will explore how technology such as Qualcomm can be used in smart cities that demand cutting-edge information and communication technology, including 4G and 5G. He said the government will later select the best technology firms.
Indonesia expanded a cooperation agreement with South Korea today relating to the construction of a new capital city on Borneo island to replace overcrowded Jakarta, paving the way for Korean firms to participate in building digital infrastructure.
The two countries initially signed an agreement in 2019 to work together on the ambitious US$32 billion project, under which Indonesia will relocate its capital to Nusantara on Borneo. No timeframe has been announced yet for its completion.
The new agreement “laid the groundwork for our companies to actively contribute to building the new Indonesian capital’s infrastructure, electronic government and smart city systems”, Yoon told a joint news conference. Yoon said South Korea can share its experience from building the administrative city of Sejong, which was officially launched in 2012.
The Public Works and Public Housing (PUPR) Minister Basuki Hadimuljono has departed for South Korea to conduct a bilateral meeting with the country’s Environment Minister Han Wha-Jin to discuss partnership possibilities in the field of infrastructure.
Through the visit, he hopes that South Korea would provide its support to the development of Indonesia’s New Capital of Nusantara.
“Your support for the construction of Indonesia’s new capital city will be very meaningful in our cooperation. Thank you once again for your support for the success of infrastructure development cooperation, especially in the New Capital City,” Basuki said in his official statement, on July 26.
In a written statement on Friday, Economic Affairs Coordinating Minister Airlangga Hartarto invited the Japan Overseas Infrastructure Investment Corporation for Transport and Urban Development (JOIN) to be involved in developing a smart city in the planned capital city of Nusantara.
When receiving a visit from JOIN Board of Directors member Takuma Hatano at the coordinating ministry’s office in Jakarta, Airlangga also invited the company to be involved in the renewable energy sector and the digital economy in Indonesia. JOIN is an infrastructure investment fund company sponsored by the Japanese private sector under the Land, Infrastructure, Transport, and Tourism Ministry.
The Constitutional Court has further smoothed the way for President Jokowi’s ambitious project of relocating the nation’s capital after it rejected petitions to repeal the Capital City Law amid growing public concerns. Three plaintiffs had filed a petition in the court asking for a review of the new Capital City Law, arguing that its speedy deliberation at the House of Representatives was unconstitutional – a throwback to what also happened to the Job Creation Law. Reading out its ruling in a hearing presided over by Chief Justice Anwar Usman on Wednesday, the court concluded that the plaintiffs’ petitions were “legally groundless”.
These days, eastern Kalimantan has a new tourist attraction. In the middle of a lush forest, a large sign says “Point Zero Nusantara”. It marks the site of Indonesia’s new capital city and serves as a reference point for calculating the height of the future buildings in the vicinity.
Earlier this month, Mdm Puji Astuti and a few other fellow Muslim businesswomen posed cheerfully in the scorching sun at point zero. Mdm Astuti was keen to see the new capital site. She believes that there will be economic opportunities, but is also cautious about whether the new city would be constructed within a span of two years.
“It is all up to the central government. Don’t just talk. If it must be ready in 2024, then start (building now). The year 2024 is not so far away,” said Mdm Astuti who is from Balikpapan in East Kalimantan province. For now, point zero is the only landmark in eastern Kalimantan’s Nusantara that gives an indication of the location and expanse of the new capital.
National Capital Authority (IKN) Chair Bambang Susantono on Wednesday said the capital construction process will begin next month. Bambang said the agency will start conducting a market sounding of several interests and desires from elements of the community in the new capital construction next month (Red/many sources).
