TEMPO.CO, Jakarta - New capital authority head Bambang Susantono on Friday said the government is currently looking for potential investors for the construction of the new capital city in East Kalimantan, which is needed to replace SoftBank following the Japanese firm's withdrawal.

He explained that establishing a credible structure for the new capital authority is one of the alternatives to attract investments, which Susantono said was currently being formed.

“Investors will eventually come naturally when we build a good structure for the new capital city authority,” he said on March 18.

He said there would be a government administrator as well as regulator in the new capital authority and a business entity that would take care of developments and its implementation and attract investors.

Thus, it is hoped that the patterns of cooperation between the government and the private sector or private investment can take place more dynamically.

“The more we have good governance, the more investors believe that we have credibility and of course later the trust will be built," Bambang added.

SoftBank Group Corp is a Japanese multinational conglomerate holding company headquartered in Minato, Tokyo, that focuses on investment management. The Group primarily invests in companies operating in technology, energy, and financial sectors and previously planned to invest US$100 billion in Indonesia’s new capital project.

Indonesia had even appointed SoftBank CEO Masayoshi Son as the head of the steering committee for the new capital.

The government reportedly needs Rp110 trillion for the development of the new capital where most of the funds will come from the private sector with the aim of preserving the state budget. Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan stated that Saudi Arabia and the United Arab Emirates (UAE) have shown interest in investing in the ambitious project.

Read: Indonesia, Saudi Arabia Capital City Investment Talks Continue

M JULNIS FIRMANSYAH