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EU investors keen on Indonesia's new capital: Ambassador
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President Joko "Jokowi" Widodo (left) and East Kalimantan Governor Isran Noor (right) during a visit to the location where the country's new capital is to be built in Sepaku district of North Penajam Paser, East Kalimantan, on Dec. 18, 2019. (Presidential Palace Press Bureau/Muchlis Jr)
E
uropean Union (EU) Ambassador to Indonesia Vincent Piket has said that EU companies are keen on investing in Indonesia’s new capital city, signaling the availability of more private funding options for the multibillion dollar project.
Piket told reporters on Tuesday that EU companies, facilitated by the European Business Chamber of Commerce in Indonesia, were interested in investing in developing electricity, energy, roads, public transportation and “smart city” systems in the new capital in East Kalimantan.
The companies are also keen on developing knowledge and tech industries in the area.
“And those are definitely the areas where we will wish to invest. It is our opportunity, and opportunities, of course, including the new capital,” he said during a press conference.
Read also: Foreign, local investors lining up to help develop Indonesia's new capital city, says Luhut
The government has estimated the total cost of the capital’s development at Rp 466 trillion (US$33.7 billion), of which just 19.2 percent can come from the state budget. Another 54.4 percent needs to come from public-private partnerships and 26.4 percent from the private sector.
The House of Representatives is currently deliberating a draft bill on the capital city that outlines how the government will organize and manage the multiple stages of development, and how it will finance the project.
