KUCHING, Malaysia, March 10 — According reports, Malaysia is at the top of the list of nations where foreign investors have submitted the most letters of intent for projects in Nusantara, the new capital of Indonesia.
Agung Wicaksono, the Nusantara Authority’s deputy for financing and investment, claimed in a story by Nikkei Asia that Indonesia has received roughly 100 letters of intent for investments in the new capital as of yesterday, with half coming from local investors in Indonesia.
“The other half comes from foreign sources, with Malaysia leading the way. It’s noteworthy to note that the number of letters of intent signed is equal between the United States and China.
“I guess that [is a reflection of] Nusantara as a city for all,” Wicaksono said during his visit to Nusantara in East Kalimantan, Indonesia.
“Out of the 100 letters received, 20 entities have entered nondisclosure agreements with the authority,” he added without elaborating further.
This report came after the head of the Nusantara Authority Bambang Susantono said Indonesia’s President Joko Widodo has approved a new regulation that offers tax incentives to businesses investing in Nusantara, including tax holidays of up to 30 years and 95 years of land use permits.
Susantono added that China is specifically interested in construction-related activities and renewable energy while countries such as South Korea, Japan, and other European countries have also expressed interest to invest in Nusantara.
“Most investors now are trying to explore in which areas they can do better … [and] of course they have to compete with each other,” he added.
Susantono also said that the authority is mulling to create an individual enterprise to handle the business-to-business side of the investments.
He said that the new law on Nusantara passed in early 2022 is being amended in parliament to give them more authority to manage Nusantara-related resources, including the freedom to hire more private sector workers.
The head of the authority said the law are expected to provide assurance on the continuity of the capital relocation project beyond October 2024, when a new president is expected to be sworn in after elections slated for February next year.
Although Widodo is constitutionally prohibited from running for a third five-year term, several investors have expressed concern that Indonesia’s incoming president may abandon the project.
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