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Indonesia, Saudi Arabia New Capital City Investment Talks Continue

17 March 2022 16:50 WIB

TEMPO.CO, Jakarta - Coordinating Minister of Maritime Affairs and Investments Luhut Binsar Pandjaitan announced on Thursday, March 17, 2022, that a special team has been sent to Saudi Arabia to follow up the negotiation on the investment in the new capital city of Nusantara. 

Luhut claimed that talks about the investment commitment will see improvements before the Ramadan month. The special team Luhut refers to will map out the bilateral agreement and establish the exact value for the commitment.

"Indonesia is now in talks with Saudi Arabia. I and the crown prince are in constant Whatsapp communication, where he always asks about the progress. He is very progressive," said Luhut on Thursday, March 17, 2022.

According to Luhut, the government of Saudi Arabia has shown interest in investing in the construction of Indonesia's new capital during a meeting between himself and Crown Prince Mohammed bin Salman Al Saud in early March this year. 

Luhut claims the Arab investment will be poured out through the sovereign wealth fund (SWF), "The program is ongoing," he added.

The Saudi Arabia investment comes after SoftBank announced its withdrawal from the new capital construction project. The Indonesian government had reportedly received a partnership commitment from Abu Dhabi that amounts to US dollar 20 billion. 

"I expect the vision fund from Abu Dhabi and Saudi Arabia will be able to enter without going through SoftBank anymore," said Luhut Pandjaitan. 

FRANCISCA CHRISTY ROSANA



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