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Jokowi bags IKN investment commitments from Japanese firms
Several Japanese companies have inked MoUs on investment commitments to develop the nation’s new capital, long viewed as the President's pet project.
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A security guard walks past information boards displayed on March 8 at “ground zero” of Indonesia's new capital, dubbed the Nusantara Capital City (IKN), in Sepaku, East Kalimantan province. (Reuters/Willy Kurniawan)
P
resident Joko “Jokowi” Widodo has reeled in investment commitments from Japanese organizations for the Nusantara Capital City (IKN) project during the Group of Seven (G7) Summit in Hiroshima.
On the sidelines of the summit over the weekend, Jokowi met with 33 Japanese delegates comprising three government officials and representatives from 24 companies, four business associations and two financial institutions.
“That meeting discussed investment cooperation in Indonesia’s priority sectors, [mainly] highlighting investments in IKN development,” Foreign Minister Retno L.P. Marsudi told an online press conference on Sunday.
The results of the President’s meeting included five memorandums of understanding (MoUs) the IKN Authority signed with the Japan International Cooperation Agency (JICA), the Japan Bank for International Cooperation (JBIC), the Japan International Association for the Industry of Building and Housing (JIBH), the Japan Conference on Overseas Development of Eco-Cities (J-CODE) and the Urban Renaissance Agency (UR).
The meeting also resulted in 24 letters of intent (LoIs) between the IKN Authority and Japanese companies, though no details were disclosed at Sunday’s press conference.
MoUs contain broad outlines of an agreement between two or more parties, while LoIs are nonbinding documents that declare a preliminary commitment to do business together, according to Investopedia.
“And Bapak [Mr.] President called for the Japanese companies to invest in other priority sectors, such as the downstream industry [and] the energy transition,” Retno told reporters.
