TheJakartaPost
Please Update your browser
Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.
Indonesia seeks new capital investors after Softbank exit
Softbank Group founder Masayoshi Son’s withdrawal from new capital city investment has raised questions on the viability of the project, while also leaving a large funding gap that the government needs to address.
Change text size
Gift Premium Articles
to Anyone
Share the best of The Jakarta Post with friends, family, or colleagues. As a subscriber, you can gift 3 to 5 articles each month that anyone can read—no subscription needed!
President Joko Jokowi” Widodo (center) pours water brought by Jakarta Governor Anies Baswedan (right), as East Kalimantan Governor Isran Noor (third left) looks on, during a Kendi Nusantara ritual at the site for Indonesia's new capital city Nusantara in Sepaku district, North Penajam Paser, East Kalimantan, on Monday. As part of the ritual, President Jokowi collected soil and water from the 34 provinces, which were brought by governors attending the ceremony. (Courtesy of Presidential Secretariat Press Bureau /Muchlis Jr. )
T
he Indonesian government is scrambling to find new investors for its multi-billion dollar new capital city project following the exit of Japan’s Softbank Group.
Coordinating Minister for Maritime Affairs and Investment Luhut Pandjaitan said on Thursday that the government was turning to Saudi Arabia and the United Arab Emirates (UAE) to fill the funding gap.
The government was hoping to win over the UAE and Saudi Arabia for funds that were initially earmarked for Softbank’s Vision Fund, but that SoftBank had slashed following troubles over some of the group’s portfolio companies.
“Now, we are hoping that the Vision Fund funds from Abu Dhabi and Saudi can come here. No need to go through SoftBank again,” said Luhut.
He said that the government had been in talks with the UAE over the matter. The middle eastern country was inclined to inject more funds through the Indonesia Investment Authority (INA), and would bring in partners from around the world, including China.
SoftBank’s exit marked a blow to the capital relocation plan as the Japanese company was reportedly ready to invest US$30 billion to $40 billion in the new capital, a huge portion of the initial development cost.
Read also: Softbank pulls out of capital city project
