TEMPO.CO, Jakarta - President Joko Widodo or Jokowi's visit to the United Arab Emirates, or UAE, resulted in several agreements on bilateral cooperation between both countries. However, there was no certainty regarding the anticipated investment for Indonesia’s Nusantara Capital City or IKN project.

The agreements were announced on Wednesday, July 17, 2024, during the bilateral meeting with UAE President Mohamed bin Zayed Al Nahyan (MBZ) at Qars al Watan in Abu Dhabi.

Previously, Jokowi mentioned that the UAE-based company Emaar Properties had committed to investing in the new capital project.

"I don't want to mention the figure as it hasn’t been signed, but it’s a big investment,” said Jokowi in a speech during the groundbreaking of the Astra Biz Center and Nusantara Botanical Garden at IKN on Tuesday, June 4, 2024. "God willing, we will sign it later in July in Abu Dhabi or Dubai.” According to Jokowi, Emaar Properties was interested in investing after a series of working visits to Indonesia, including Nusa Dua, Labuan Bajo, Mandalika, and IKN.

The agreements agreed to by Indonesia and UAE during Jokowi's visit are as follows:

1. MoU between the Ministry of State-Owned Enterprises and Eagle Hills regarding Tourism Ecosystem Improvement through Cooperation with Assets of State-Owned Enterprises in Airport and Logistics, Hospitality, and Tourism Sectors;

2. MoU between the international financial hub Dubai International Financial Center Authority and IKN Authority;

3. MoU between PT Indonesia Comnets Plus and the renewable energy company Abu Dhabi Future Energy Company PJSC-Masdar regarding the Joint Study of Solar Singles in Indonesia;

4. MoU between Emirates Nuclear Energy Company and the National Research and Innovation Agency on the Cooperation on Nuclear Power Plant to Support the Nuclear Program in the UAE and Indonesia;

5. MoU between the philanthropic endowment Mohamed Bin Zayed Species Conservation Fund and the Coordinating Ministry for Maritime Affairs and Investment on the Project of the Sheikh Mohamed Bin Zayed - Joko Widodo International Mangrove Research Center in Bali;

6. MoU between the Indonesian Ministry of Finance and the UAE Ministry of Finance regarding Public Finance Management;

7. MoU between Bank Indonesia and the Central Bank of the UAE regarding Payment System Cooperation; and

8. MoU on Defense Sector on the Maritime Portal Aircraft and Anti-Submarine Warfare.

To date, there has been no foreign investment realization in IKN despite the government’s claim of receiving hundreds of MoUs and LoIs. Minister of Investment Bahlil Lahadalia revealed on June 11 that the investment entering IKN in its first stage of development is all domestic.

The government, from 2022 to the end of 2024, will have allotted Rp72 trillion out of the State Budget for the development of IKN. Jokowi also asserted multiple times that only governmental buildings in IKN are funded by the State Budget while emphasizing the necessity of investment to sustain the new capital project.

DANIEL A. FAJRI

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