Global Courant
JAKARTA – New deals signed in Singapore last week reflect how there has been increased investment interest for Indonesia’s emerging capital, Nusantara, experts told The Straits Times.
They added that more substantive updates of investments for the new city are likely to come after the archipelago goes to the polls in 2024.
Their comments were made after at least two companies signed non-disclosure agreements on June 8 in Singapore to work on projects in Nusantara following Indonesia’s increasing efforts to market its new city.
The Straits Times has learned that the State Power Investment Corporation (SPIC), one of the top five power generation companies in China, and Joe Green Pte Ltd, a construction company from Singapore, have signed these agreements with the Nusantara National Capital Authority (OIKN). .
The agreements were signed during Ecosperity Week, Temasek’s annual sustainability event, held June 6-8 at the Sands Expo and Convention Center.
Indonesian President Joko Widodo attended the event on June 7, where he delivered a strong pitch for investment in the country’s emerging new capital, Nusantara, days after Singaporean investors visited the site during a roadshow for the city, the first in a series of roadshows that the archipelago plans to organize.
More than 130 government officials and businessmen from Singapore participated in the roadshow from May 30 to June 1 to explore opportunities in Nusantara.
Bank Permata economist Josua Pardede said the two signed agreements indicate a deeper sense of commitment from foreign investors for Nusantara.
Mr Pardede noted that both companies that signed the agreements are involved in renewable energy and said the signing reflects how the emerging city is moving towards achieving its goal of becoming smart and green.
“If the investments continue (come) in the future, then the green energy development in the new capital would be better than others in the region,” he said, adding that more investments are likely to come for Nusantara next year after General elections in Indonesia in February 2024.
ST understands that representatives from SPIC and Joe Green were part of the roadshow and that the two companies will work on projects related to renewable energy and waste management.
Mr. Dedi Dinarto, chief analyst Indonesia at Global Counsel, the public policy consultancy, agrees that there would be interest in Nusantara after the country goes to the polls, and that the signing of the two agreements last week has shown continued interest in represents the city.
But nothing is certain, he added.
“The non-disclosure agreements, memoranda of understanding and other temporary agreements are simply intended to bind the two parties during the negotiation phase, but they do not guarantee a final investment commitment,” said Dedi, referring to how other agreements have been signed. in the past.
“In my opinion, we can only witness a genuine commitment from investors, especially foreign ones, after Indonesia’s general elections scheduled for February 2024.”
