Indonesia Collects 220 LoI from Investors for New Capital Project

TEMPO.CO, Jakarta - Head of the Nusantara Capital City (IKN) Authority Bambang Susantono announced the government has thus far received 220 letters of intent (LoI) or initial commitments to invest in the new capital city project.

“We got more than 220 LoI. But the letter of intent which will be worked on in the field will take time [to realize],” Bambang said at an event on the dissemination of Government Regulation No. 12 of 2023 at Ciputra Artpreneur, South Jakarta, Tuesday, May 23, 2023.

Bambang refused to disclose the value of the LoI. But he revealed that 24 of them came from Japanese investors whom he met at the G7 Summit in Hiroshima. “It’s quite huge,” he shortly said.

He also emphasized that the realization will take time because investors want everything to be calculated, particularly the level of profitability, the risk level, the practice, and the beginning time.

According to him, only these factors made the process seem slow. Investors are also still visiting the field to see the topography, contours, roads, and facilities such as wifi, telecommunications, energy, and water.

Nevertheless, he assessed that the LoI allowed the Indonesian government to map the fields of interest to investors, for example, energy, transportation, shopping centers, hospitals, and educational facilities.

Investors will then ask for non-disclosure agreements (NDA) to calculate and consider their capital injection for the new capital city project in East Kalimantan. The data is confidential and must not be shared with other parties. “If I’m not mistaken, there are more than 36 NDA. I don't know the latest number yet,” Bambang said.

RIANI SANUSI PUTRI

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