Gov’t Offers Investment Opportunities in New Capital City

Minister of National Development Planning /Head of the National Development Planning Agency (Bappenas) Suharso Monoarfa attends a Limited Meeting at the Presidential Office, Jakarta, Wednesday (26/2). (Photo by: Rahmat/PR).

The Government offers investment opportunities in the new capital city, according to Minister of National Development Planning / Head of the National Development Planning Agency (Bappenas) Suharso Monoarfa. There are several clusters offered to the investors.

“They can invest in clean water supply, affordable and environmentally friendly power plant, and other sectors. We will offer tremendous opportunities for investment,” the Minister said in a Limited Meeting at the Presidential Office, Jakarta, Wednesday (26/2).

Suharso also asserted that foreign investors that taking part in the construction of the new capital will not make a major change because the Government has prepared a master plan which will be followed by these investors. The master plan, he added, is expected to be completed in the first semester of 2020.

According to the Minister, out of Rp466 trillion needed to develop the new capital, Rp90 trillion will be sourced from the State Budget (APBN), Rp120 trillion will be sourced from the private sector, and the remaining will be sourced from Government and Business Entities Cooperation (KPBU) scheme.

“The figure may change. The private sector may take portion of KPBU. It is allowed,” he said adding that the new capital will have a special government run by a new authority which will be called Capital Authority Agency. This new agency will be led by an official of ministerial level.

The Government expects to carry out soft groundbreaking by the end of this year or in early 2021. The real construction works will begin afterwards and if everything goes as planned the new city will be able to function as the new capital at the first half of 2024.

In terms of regulation, the Government plans to submit the bill on new capital city to the House of Representatives after the recess period ends. The bill regulates, among others, the location of the new capital, borders, the authority agency, and the formation of a new autonomous region. (FID/EN)

Translated by : Rany Anjany
Reviewed by : Mia Medyana