Indonesia Seeks Financial Impetus From Saudi Arabia To Relocate Capital For $32 Billion
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Khalid Al Mansoor
- . September 2, 2022
- . Update: September 3, 2022 2:03 pm
Indonesia–Inspired by Saudi Arabia’s Vision 2030, Indonesia is now seeking investment funds from the Kingdom, in hope to establish a new city. On the horizon is the development of the new capital city in Borneo at a massive investment of $32 billion; something that was communicated by Jakarta’s envoy to Jeddah recently.
Plans to move its capital to a new location comes as the old one seems saturated with no options for more to be accommodated. The new city would be found some 2000 kilometers away in East Kalimantan with the new city set to be called “Nusantara,” which means “archipelago” in old Javanese.
The decision to go ahead with this development was taken in January when a new law was put into place. While it has been confirmed that the project might take decades to be put together, it will help upgrade the roadmap of success for Indonesia.
It is going to be a tough task to re-establish everything, owing to the fact that Jakarta is home to about 60percent of the country’s population and more than half of the country’s economic activity happens here.
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Indonesia’s consul general, Eko Hartono, said his country’s project is similar to the Kingdom’s transformation plan which combines high technology with environmental concerns. Financial backing has been sought from several other nations, Hartono said.
While nothing has been finalized, there are hopes that Saudi Arabia is willing to bet its money on Indonesia’s growth dream. Indonesia, which has been trying to attract investors to fund the mega project, has turned its focus on Middle Eastern and Chinese investors after Japan’s SoftBank Group founder Masayoshi Son pulled out in March.
Indonesia, which has been trying to attract investors to fund the mega project, has turned its focus on Middle Eastern and Chinese investors after Japan’s SoftBank Group founder Masayoshi Son pulled out in March.
