Indonesia "joins hands" with Singaporean businesses to build new capital

On June 8, the National Capital Region Nusantara (OIKN) Government of Indonesia signed a non-disclosure agreement (NDA) on the development of the new capital city (IKN) Nusantara with the State Power Investment Corporation (SPIC) and Singapore's JOE Green Pte Ltd.

Indonesia 'bắt tay' với doanh nghiệp Singapore xây dựng thủ đô mới

Nusantara - the new capital of Indonesia has a total area nearly 4 times larger than Jakarta. (Source: futuresoutheastasia.com)

OIKN Vice President for Finance and Investment Agung Wicaksono signed the agreement with SPIC Advisor Steven Yeo and JOE Green Pte Ltd CEO Boediman Widjaja during the Eco Week event in Singapore.

“SPIC believes that Nusantara is an excellent investment opportunity and we look forward to working together,” Mr Yeo said in a statement. Meanwhile, Mr Widjaja said JOE Green is committed to supporting sustainable development through the use of recycled materials and “Nusantara – with all its incentives – is the perfect place to invest.”

SPIC and JOE Green are active in the waste management and renewable energy sectors, which have been identified as top priorities by OIKN. Nusantara aims to develop 7.16 GW of renewable energy plants to supply 1.9 million people by 2045.

OIKN promises to welcome all investors through public-private partnerships, direct investment programs, along with tax and non-tax incentives, including land use rights for up to 95 years. “OIKN has more than 300 investment packages worth a total of US$2.6 billion, covering six top priorities and 12 high priority sectors,” said Mr. Wicaksono.

Located on the east coast of Borneo Island and with a total area of 256,142 hectares, nearly four times larger than Jakarta, of which the sea surface area is 68,189 hectares, Nusantara is the new capital city of Indonesia according to Law No. 3/2022. OIKN is the governing and operating agency of Nusantara, in which the head is a cabinet minister appointed by the president.

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