Gov’t Won’t Use Loan in New Capital Development

President Jokowi in a meeting with press at the Merdeka Palace, Jakarta, Friday (17/7). (Photo by: BPMI)

The Government has announced it will use investment and partnership schemes instead of loan in the development of the country’s new capital in East Kalimantan.

“There will be no loan and we will not provide government guarantee as well. The development will adopt pure partnership system,” President Jokowi told reporters at the Merdeka Palace, Jakarta, Friday (17/7).

To promote the partnership, the President said he had invited three global renowned figures as members of steering committee for new capital development.

They are Crown Prince of the Emirate of Abu Dhabi Sheikh Mohammed bin Zayed Al Nahyan, CEO of Soft Bank Masayoshi Son, and former UK prime minister Tony Blair.

The President went on to say that the three figures on the steering committee have great international reputation. Nevertheless, the Indonesian Government will carry out the implementation of the project on the ground, he added.

According to the President, the global renowned figures are expected to build international trust to Indonesia that will promote cooperation and partnership.

“Government and Business Entities Cooperation (KPBU), Public Private Partnership (PPP), and other cooperation schemes are expected to be adopted immediately,” he stated.

The Head of State also stressed that the administrative center will be relocated to East Kalimantan Province, yet the location can still be changed, depending on the decision of the House of Representatives. Regarding the Authority Body of Capital City, the President said he still has to decide on the chair among several candidates proposed to him.

“I haven’t decided it yet because the chair must have the expertise in financial sector, particularly in global finance and urban planning. He/she must also have international networking,” the President said. (BPMI/EN)

Translated by : Rany Anjany
Reviewed by : M. Ersan Pamungkas