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Minister Admits Indonesia's New Capital Project Draws No Foreign Funds Yet

13 June 2024 15:15 WIB

TEMPO.CO, JakartaIndonesian Investment Minister Bahlil Lahadalia admitted that the new capital Nusantara or IKN project has not secured foreign investment to date. He argued that this is because the first phase of the construction has not yet been completed.

Bahlil claimed that foreign investors have communicated and asked when they could start investing in the IKN. “But, we said that we will see them after August 17,” he said in a working meeting with Commission VI of the House of Representatives (DPR) on Tuesday, June 11.

Previously, President Joko Widodo or Jokowi revealed that numerous investors were in a queue to finance the new capital project. However, he decided to give priority to local investors over foreign ones.

The President made the statement after attending the Asia Pacific Economic Forum or APEC CEO Summit in San Francisco, United States, in November 2023.

On another occasion, he stressed that the Indonesian government would always favor local investors for the initial phase of the IKN development.

“But if we are stuck and there is nothing left, we will take steps by allowing foreign investors,” he said at the groundbreaking ceremony of Pakuwon Nusantara on November 1, 2023.

“Since a few months ago, 130 investors from Singapore have visited [Nusanatara]. Why do they come all the way here if they are not interested [in investing in the project]? There are also 30 investors from Korea, 30 from Japan, Malaysia, and the United Arab Emirates,” Jokowi said.

RADEN PUTRI | TIM TEMPO

Editor’s Choice: Management Says Tapera Savings Will Not be Used to Finance New Capital City Development

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