Indonesia Economy Forum

[NEKONEKO]

Orang Terkaya Afrika Borong 10.000 Mobil Desa Buatan Indonesia

JAKARTA, KOMPAS.com — Salah satu pengusaha terkaya asal Afrika akan membeli 10.000 unit mobil pedesaan Indonesia, yaitu Alat Mekanis Multiguna Pedesaan ( AMMDes), untuk dipasarkan ke Nigeria.

Direktur Industri Maritim, Alat Transportasi, dan Alat Pertahanan Kementerian Perindustrian Putu Juli Ardika mengatakan, pembelian mobil desa itu melalui perusahaan Dangote Group, milik Aliko Dangote yang merupakan miliarder asal Afrika.

"Jadi Dangote Group itu dia sangat berminat untuk melakukan impor, untuk customer-nya di sana," ucap Putu di Kementerian Perindustrian, Jakarta, Senin (6/1/2020).

Baca juga: Harta Turun Rp 140 Triliun, Jeff Bezos Tetap Jadi Orang Terkaya di Dunia

Putu menjelaskan, pengusaha Afrika tersebut tertarik dengan AMMDes yang merupakan mobil desa dengan fungsi penyedia air, pengolahan kasava, dan penanganan biji-bijian.

"Timnya Dangote akhir Januari ini akan mengecek tiga unit sample untuk dibawa ke sana," ucapnya.

Rencananya, ekspor mobil tersebut akan dilakukan secara bertahap selama lima tahun, dengan tahun ini dan tahun depan direncanakan akan ekspor sebanyak 1.000 unit.

"Mudah-mudahan tahun ini sama tahun depan itu bisa 1.000 (unit), bertahap, lima tahunlah," ucapnya.

Baca juga: Ini Kakek Terkaya Se-Indonesia, Dulunya Jualan Sabun Keliling

Dilansir dari Bloomberg, Dangote Group merupakan perusahaan yang fokus bergerak di bidang industri seperti semen dan komoditas gula serta tepung.

Perusahaan ini memiliki daerah operasi di Nigeria dan sejumlah negara di Afrika, termasuk Benin, Kamerun, Togo, Ghana, Afrika Selatan, dan Zambia.

Pendiri Dangote Group yaitu Aliko Dangote, merupakan pria terkaya Afrika, yang memiliki kekayaan 4,3 miliar dollar AS pada tahun 2019, yang menjadikannya 100 pria terkaya di dunia pada Bloomberg Billionaires Index.

https://money.kompas.com/read/2020/...ng-10000-mobil-desa-buatan-indonesia?page=all

Indonesia will export 10.000 unit AMMDes car to Nigeria.

 

[Nike]

Jokowi to Leave for UAE to Secure Rp163tn Investment Deal
Translator:
Dewi Elvia Muthiariny
Editor:
Petir Garda Bhwana
8 January 2020 08:51 WIB

Jokowi” Widodo is scheduled to witness the signing of the investment agreement with the United Arab Emirates (UAE) in Abu Dhabi on January 13, said Foreign Affairs Minister Retno Marsudi.

According to Minister Retno, the President will depart to UAE on January 11.

“This is the President’s first [overseas] visit in 2020 for a bilateral meeting. The meeting will take place in Abu Dhabi and Dubai,” said Retno at the Coordinating Ministry of Maritime Affairs and Investment Office, on Tuesday, January 7.

Ads by Kiosked

The UAE reportedly committed to investing US$18.8 billion or Rp163 trillion to Indonesia’s multiple sectors. The figure was lower than previously said by the Coordinating Minister of Maritime Affairs and Investment Luhut Binsar Pandjaitan.

Luhut said the investment amounted to US$20 billion, which would be prioritized to the energy sector.

Four energy projects to be funded worth US$16 billion include two oil refineries of Balongan and Balikpapan that will be developed by state-run oil and gas firm Pertamina, the floating photovoltaic (PV) power plant by state-run electricity firm PLN, and a project of state-run mining company Inalum. For the initial stage, the UAE would disburse fresh funds worth US$3.9 billion.

FRANCISCA CHRISTY ROSANA
https://en.tempo.co/read/1292444/jokowi-to-leave-for-uae-to-secure-rp163tn-investment-deal

 

[Indos]

Nigerian conglomerate Dangote to purchase 10,000 Indonesian-made rural vehicles: Ministry

• News Desk
  The Jakarta Post
  

Jakarta / Wed, January 8, 2020 / 09:12 am

A visitor examines a multifunctional pickup truck at Kiat Motor’s workshop in Klaten, Central Java. The vehicle, also known as the AMMdes, is the product of an Industry Ministry-sponsored program to provide more affordable means of transportation to rural people. (Antara/Aloysius Jarot Nugroho)


A billionaire from Africa plans to purchase 10,000 Indonesian-made light pickup trucks, called the rural multipurpose mechanical tool (AMMDes), to be marketed in Nigeria.

The Industry Ministry’s director of maritime industry, transportation equipment and defense equipment, Putu Juli Ardika, said the vehicles would be purchased by Aliko Dangote through his company Dangote Group.

“Dangote Group is very interested in importing [the trucks] for its customers in Africa,” Putu said as quoted by kompas.com on Monday.

Putu stated that Dangote was interested in the multipurpose vehicle for to its ability to carry water and cassava and seed processors.

“Dangote’s team will check three units as a sample to be brought to Africa at the end of January,” Putu said.

The trucks are set to be exported over five years, with 1,000 units to be exported this year and next year.

Dangote Group is a Nigerian-based enterprise that operates in fields such as cement, sugar and flour production. The company operates in Nigeria and other African countries such as Benin, Cameroon, Togo, Ghana, South Africa and Zambia. With a net worth of US$4.3 billion, Dangote is Africa’s richest man and one of the word’s 100 richest men according to the Bloomberg Billionaires Index. (dpk)

https://www.thejakartapost.com/news...-ministry.html?src=mostviewed&pg=more-article

 

[Indos]

World Bank projected Indonesian economy to grow at 5.1 percent in this year 2020.

http://pubdocs.worldbank.org/en/422...spects-January-2020-Regional-Overview-EAP.pdf

 

[NEKONEKO]

Indonesia asks Japan to invest in islands near waters disputed with China
JAKARTA (Reuters) - Indonesia’s President Joko Widodo on Friday asked Japan to step up investment in fisheries and energy in some of its South China Sea islands following a stand-off with China in waters that China claims in the area.

Widodo made the request for Japan to consider economic opportunities in the Natuna islands during a visit to Jakarta by Japanese Foreign Minister Toshimitsu Motegi, the president’s office said in a statement.

“I want to invite Japan to invest in Natuna,” he told Motegi, adding that Japan was one of Indonesia’s major economic partners.

Widodo visited Natuna on Wednesday to assert Indonesia’s sovereignty over the cluster of islands and the waters around them, after reports Chinese coastguard and fishing vessels had entered Indonesia’s exclusive economic zone several times since last month.

China has not claimed the Natuna islands themselves but says it has nearby fishing rights within a self-proclaimed Nine-Dash Line - a line on Chinese maps that it says shows its territory and waters.

The line loops far south from China and includes most of the South China Sea, but it is a claim that is not recognized internationally. Vietnam, the Philippines, Brunei, Malaysia and Taiwan have rival claims in the South China Sea.


Indonesian Foreign Minister Retno Marsudi told reporters Widodo had asked Japan to invest in fisheries, energy and tourism in Natuna.

“We also agreed to strengthen coastguard coordination,” he said.

Indonesia had stepped up air and sea patrols in the area and summoned China’s ambassador over the appearance of the ships. An Indonesian military spokesman said the vessels left the area after Widodo’s trip.

China says it is in contact with Indonesia through diplomatic channels to resolve differences and uphold stability in the region.

Motegi, speaking through a translator after a meeting with Marsudi, did not refer to China but said Japan was wary about the situation in the South China.

“We shared a serious concern regarding efforts to change with force the status quo unilaterally and we confirmed continuing close collaboration,” he said.

Japan last year gave Indonesia 100 billion rupiah ($7.26 million) to build a fish market in Natuna, which will be named Tsukiji after the famous Tokyo market, media reported.

Construction of the market in Natuna, and markets on other Indonesian islands, will begin this year, Motegi said.

https://www.reuters.com/article/us-...=Feed:+Reuters/worldNews+(Reuters+World+News)

 

[Nike]

purchase seven vessels worth $67 million

• News Desk
  The Jakarta Post
  

Jakarta / Wed, January 8, 2020 / 12:30 pm

An oil tanker is seen at the Jose refinery cargo terminal in Venezuela in this undated photo. (Reuters/Jorge Silva)
Shipping company PT Humpuss Intermoda Transportasi plans to purchase seven vessels worth US$67 million in 2020, according to an executive.

President director Budi Haryono said at the company's annual press briefing on Dec. 30 that it would buy one floating storage regasification unit (FSRU) — a special ship for the conversion of liquefied natural gas (LNG) back into gas for distribution — worth around $50 million, two chemical tankers worth $10 million and four offshore support vessels worth $1.5 million each.

The publicly listed company is operating at least 84 vessels, of which around 40 are owned by its partners. Most of them are oil and gas tankers.

In 2019, the company bought one chemical tanker, fewer than the five vessels planned.

"The planned purchase in 2020 depends on the availability of the vessels in accordance with our preferred specifications and budget allocations,” Budi said.

The planned purchase, to be financed by the company's cash and bank loans, was part of its efforts to expand to energy distribution, he said.

Humpuss announced in 2018 that it planned to become an energy distributor.

Director Taufik Agustono said the company's expansion to gas distribution through an FSRU was in line with the government's policy to encourage more use of natural gas and less use of oil.

"Facilities in the energy supply chain are not adequate enough yet to support the government's policy. We're helping the government to prepare it," he said.

As the company has been involved in gas shipping for 30 years, it will support the energy supply chain by procuring an FSRU for gas storage and distribution, Taufik added.

In 2017, Humpuss invested in the procurement of an FSRU for the 1,760-megawatt (MW) Java I gas steam power plant (PLTGU) in West Java, in a consortium with state-owned energy company Pertamina and Japanese trading companies Marubeni and Sojitz. The plant was established with an investment of $1.8 billion.

Humpuss, according to president commissioner Theo Lekatompessy, was also in the process of securing an investment deal to procure an FSRU facility and to provide a shipping vessel for a power generation project in North Sulawesi.

Theo told reporters that the planned FSRU purchase was part of the company’s efforts to add a new source of revenue.

The company was eyeing a 20-percent increase in its revenue in 2020 from $85.9 million estimated for 2019, Budi said.

The 2019 revenue was 5 percent higher than $81.8 million in 2018 but was 11 percent lower than the targeted $96.8 million.

Out of the company’s 2019 revenue, 35 percent was contributed by LNG shipping, 22 percent by oil shipping and 21 percent by chemicals shipping.

Budi acknowledged that the low revenue growth was mainly caused by the postponement of some projects as stakeholders were in wait-and-see mode on account of the presidential election in April.

However, the growth rate of Humpuss' revenue was actually far higher than the average revenue growth of 1.43 percent for the overall shipping industry.

"We expect that LNG shipping will continue to be the main sector driving our revenue growth next year because the business opportunity is big," Theo told reporters.

Theo said the FSRU operation for the Java I project in 2021 was expected to become a major source of revenue. (dfr)

https://www.thejakartapost.com/news...-purchase-seven-vessels-worth-67-million.html

 

[HannibalBarca]

Orang Terkaya Afrika Borong 10.000 Mobil Desa Buatan Indonesia

JAKARTA, KOMPAS.com — Salah satu pengusaha terkaya asal Afrika akan membeli 10.000 unit mobil pedesaan Indonesia, yaitu Alat Mekanis Multiguna Pedesaan ( AMMDes), untuk dipasarkan ke Nigeria.

Direktur Industri Maritim, Alat Transportasi, dan Alat Pertahanan Kementerian Perindustrian Putu Juli Ardika mengatakan, pembelian mobil desa itu melalui perusahaan Dangote Group, milik Aliko Dangote yang merupakan miliarder asal Afrika.

"Jadi Dangote Group itu dia sangat berminat untuk melakukan impor, untuk customer-nya di sana," ucap Putu di Kementerian Perindustrian, Jakarta, Senin (6/1/2020).

Baca juga: Harta Turun Rp 140 Triliun, Jeff Bezos Tetap Jadi Orang Terkaya di Dunia

Putu menjelaskan, pengusaha Afrika tersebut tertarik dengan AMMDes yang merupakan mobil desa dengan fungsi penyedia air, pengolahan kasava, dan penanganan biji-bijian.

"Timnya Dangote akhir Januari ini akan mengecek tiga unit sample untuk dibawa ke sana," ucapnya.

Rencananya, ekspor mobil tersebut akan dilakukan secara bertahap selama lima tahun, dengan tahun ini dan tahun depan direncanakan akan ekspor sebanyak 1.000 unit.

"Mudah-mudahan tahun ini sama tahun depan itu bisa 1.000 (unit), bertahap, lima tahunlah," ucapnya.

Baca juga: Ini Kakek Terkaya Se-Indonesia, Dulunya Jualan Sabun Keliling

Dilansir dari Bloomberg, Dangote Group merupakan perusahaan yang fokus bergerak di bidang industri seperti semen dan komoditas gula serta tepung.

Perusahaan ini memiliki daerah operasi di Nigeria dan sejumlah negara di Afrika, termasuk Benin, Kamerun, Togo, Ghana, Afrika Selatan, dan Zambia.

Pendiri Dangote Group yaitu Aliko Dangote, merupakan pria terkaya Afrika, yang memiliki kekayaan 4,3 miliar dollar AS pada tahun 2019, yang menjadikannya 100 pria terkaya di dunia pada Bloomberg Billionaires Index.

https://money.kompas.com/read/2020/...ng-10000-mobil-desa-buatan-indonesia?page=all

Indonesia will export 10.000 unit AMMDes car to Nigeria.

Nigerian conglomerate Dangote to purchase 10,000 Indonesian-made rural vehicles: Ministry

• News Desk
  The Jakarta Post

Jakarta / Wed, January 8, 2020 / 09:12 am

A visitor examines a multifunctional pickup truck at Kiat Motor’s workshop in Klaten, Central Java. The vehicle, also known as the AMMdes, is the product of an Industry Ministry-sponsored program to provide more affordable means of transportation to rural people. (Antara/Aloysius Jarot Nugroho)


A billionaire from Africa plans to purchase 10,000 Indonesian-made light pickup trucks, called the rural multipurpose mechanical tool (AMMDes), to be marketed in Nigeria.

The Industry Ministry’s director of maritime industry, transportation equipment and defense equipment, Putu Juli Ardika, said the vehicles would be purchased by Aliko Dangote through his company Dangote Group.

“Dangote Group is very interested in importing [the trucks] for its customers in Africa,” Putu said as quoted by kompas.com on Monday.

Putu stated that Dangote was interested in the multipurpose vehicle for to its ability to carry water and cassava and seed processors.

“Dangote’s team will check three units as a sample to be brought to Africa at the end of January,” Putu said.

The trucks are set to be exported over five years, with 1,000 units to be exported this year and next year.

Dangote Group is a Nigerian-based enterprise that operates in fields such as cement, sugar and flour production. The company operates in Nigeria and other African countries such as Benin, Cameroon, Togo, Ghana, South Africa and Zambia. With a net worth of US$4.3 billion, Dangote is Africa’s richest man and one of the word’s 100 richest men according to the Bloomberg Billionaires Index. (dpk)

https://www.thejakartapost.com/news...-ministry.html?src=mostviewed&pg=more-article

Such manufacturers should target the North African region... Where such type of "products" are extremely needed.
unfortunately... you guys aren't present out here as a whole.

 

[Indos]

Well Oiled: Indonesia Spares No Time With B40 Biodiesel Mix
BY DIANA MARISKA

JANUARY 09, 2020

Jakarta. Indonesia continues its research and trial on a diesel fuel replacement, aiming for nationwide usage of B40, a mix of 40 percent palm-oil based biofuel and diesel fuel by next year, the Energy and Mineral Resources Ministry said on Thursday.

The B40 is part of a medium-term strategy to reduce the country's dependence on expensive import of fossil fuel. The program will also ensure steady demand for crude palm oil (CPO) if the European Union goes ahead with its plan to ban import of palm-oil based biofuel in the next few years.

Indonesia released an earlier version of the fuel mix, the B20, early last year and made it a mandatory substitute for regular diesel fuel. The upgraded B30 program was just released last month.

The B40 has already had a trial run with an official release slated for next year.

Energy and Mineral Resources Minister Arifin Tasrif said on Thursday that some engines encountered problems with their filter during the trial. However, the minister assured this was the natural effect of the rust-removing biofuel. After some time the engine would become cleaner and run more smoothly.

Djoko Siswanto, the director general of oil and gas at the ministry, said the government's main challenge now is to manage the logistics and supply chain to ensure a constant stream of the B40.

"We are selecting the most suitable [sources] for the green fuel CPO and identifying the best refineries," he said.

Waiting for new refineries to be built to produce biofuel in large enough quantity to replace regular diesel would take too long. So for now the government is relying on existing refineries close to CPO sources to produce the biofuel, Djoko said.

The biofuel program is expected to cut $4.5 billion in diesel fuel import this year. This expected to improve the country's trade balance which went down into the red last year.

President Joko "Jokowi" Widodo also said the biofuel program provides a cushion for Indonesia in the face of EU's palm oil restrictions.

"The European Union wants to ban our palm oil, but we are calm. We'll use it ourselves. Why should we export there?" Jokowi said on Thursday.

Today, Indonesian palm oil accounts for about half of Europe's CPO market. The EU imports an average of 3.6 million tons of Indonesian palm oil worth 2.3 billion euros ($2.6 billion) every year in the past five years.

"We are implementing a new business strategy so we won't have to depend on other countries again," Jokowi said.

https://jakartaglobe.id/business/well-oiled-indonesia-spares-no-time-with-b40-biodiesel-mix

 

[Nike]

Such manufacturers should target the North African region... Where such type of "products" are extremely needed.
unfortunately... you guys aren't present out here as a whole.

As far as i know Indonesia business presence in MENA region is limited in and around Egypt and Maroko due to historical reason. Tunisia and Algeria, our business rep. dont have much connection there except in energy business so far there is push in Ministry of foreign affairs to made large scale push toward Africa including MENA region but the base for their effort will be started from Maroko and Egypt. Meanwhile, Nigeria is one of Indonesia target for business and investment due to their potential

 

[Indos]

Such manufacturers should target the North African region... Where such type of "products" are extremely needed.
unfortunately... you guys aren't present out here as a whole.

As said by @Nike our foreign minister will try to fill the area where our businesses are not present. Starting at this year our foreign minister office will be actively promote our product and do economic diplomacy around the world.

I also think many of our businesses dont have marketing office in MENA region. And since not many MENA region people who live in Indonesia, it then create difficulty to link Indonesia businesses with MENA market. I actually have a friend who are partnered with Turkish living in Indonesia to exports Indonesian (arang) carbon to Turkey. Without that Turkish guy, it is impossible to do that since he is the one who has connection in Turkey that will sell that carbon to Turkish market.

One thing that make Chinese products are so successful IMO is because of the present of Chinese diaspora around the world that channel mainland Chinese products to their new home country. Many of their diaspora are also business people. I have a friend from England, for example, who said Chinese businesses are quite thriving there.

 

[HannibalBarca]

As said by @Nike our foreign minister will try to fill the area where our businesses are not present. Starting at this year our foreign minister office will be actively promote our product and do economic diplomacy around the world.

I also think many of our businesses dont have marketing office in MENA region. And since not many MENA region people who live in Indonesia, it then create difficulty to link Indonesia businesses with MENA market. I actually have a friend who are partnered with Turkish living in Indonesia to exports Indonesian (arang) carbon to Turkey. Without that Turkish guy, it is impossible to do that since he is the one who has connection in Turkey that will sell that carbon to Turkish market.

One thing that make Chinese products are so successful IMO is because of the present of Chinese diaspora around the world that channel mainland Chinese products to their new home country. Many of their diaspora are also business people. I have a friend from England, for example, who said Chinese businesses are quite thriving there.

Yes, having a connection/partner is useful to expend market.
But a platform can be a stopgap in that aspect.
Where per exemple Alibaba alike platforms are widely used for manufacturers prospect/choice or just as a market window.

 

[Indos]

Yes, having a connection/partner is useful to expend market.
But a platform can be a stopgap in that aspect.
Where per exemple Alibaba alike platforms are widely used for manufacturers prospect/choice or just as a market window.

Yup, actually one of our unicorn company, Bukalapak, has started to do global last year. This is the news from May 2019.

BukaGlobal aims to connect 4 million traders with regional customers

• News Desk
  The Jakarta Post
  

Jakarta / Mon, May 27, 2019 / 04:09 pm

Bukalapak cofounder and president Fajrin Rasyid (right) and Indonesian Embassy to Malaysia economic counselor Harry Rusmana Irawan pose after the introduction of BukaGlobal in Malaysia. (Courtesy of /Bukalapak)

Bukalapak has expanded its business to a number of neighboring countries – Singapore, Malaysia, Hong Kong, Taiwan and Brunei Darussalam – through its global brand BukaGlobal.

Rahmat Fitra Wibowo, Bukalapak corporate communications supervisor, said with BukaGlobal, Bukalapak aimed to connect 4 million traders in Indonesia with customers in those countries.

“This expansion is to reaffirm Bukalapak's mission to support the growth of small and medium enterprises (SMEs) in Indonesia,” Rahmat said in a press statement received on Monday.

Fajrin Rasyid, Bukalapak cofounder and president, introduced BukaGlobal to customers in Malaysia recently. He was welcomed by the economic counselor at the Indonesian Embassy to Malaysia, Harry Rusmana Irawan.

Rahmat said the operation of BukaGlobal in Malaysia was expected to boost the sales of products of Indonesian SMEs.

Since May 20, he said, customers could order products from BukaGlobal with delivery times of between six and 11 days. (bbn)

https://www.thejakartapost.com/news...-million-traders-with-regional-customers.html

 

[HannibalBarca]

Yup, actually one of our unicorn company, Bukalapak, has started to do global last year. This is the news from May 2019.

BukaGlobal aims to connect 4 million traders with regional customers

• News Desk
  The Jakarta Post

Jakarta / Mon, May 27, 2019 / 04:09 pm

Bukalapak cofounder and president Fajrin Rasyid (right) and Indonesian Embassy to Malaysia economic counselor Harry Rusmana Irawan pose after the introduction of BukaGlobal in Malaysia. (Courtesy of /Bukalapak)

Bukalapak has expanded its business to a number of neighboring countries – Singapore, Malaysia, Hong Kong, Taiwan and Brunei Darussalam – through its global brand BukaGlobal.

Rahmat Fitra Wibowo, Bukalapak corporate communications supervisor, said with BukaGlobal, Bukalapak aimed to connect 4 million traders in Indonesia with customers in those countries.

“This expansion is to reaffirm Bukalapak's mission to support the growth of small and medium enterprises (SMEs) in Indonesia,” Rahmat said in a press statement received on Monday.

Fajrin Rasyid, Bukalapak cofounder and president, introduced BukaGlobal to customers in Malaysia recently. He was welcomed by the economic counselor at the Indonesian Embassy to Malaysia, Harry Rusmana Irawan.

Rahmat said the operation of BukaGlobal in Malaysia was expected to boost the sales of products of Indonesian SMEs.

Since May 20, he said, customers could order products from BukaGlobal with delivery times of between six and 11 days. (bbn)

https://www.thejakartapost.com/news...-million-traders-with-regional-customers.html

Interesting, Hope they push it to a global market opening as soon as possible.
Since Alibaba is in the optic of opening it's Platform integration to even more countries in the coming years, therefore hoping to make it a Global supplier center.

 

[NEKONEKO]

Indonesia is trying to explore more economic cooperation with African countries, with the Indonesia Africa Forum and Indonesia-Africa Infrastructure dialogue 2019.

https://iaf.kemlu.go.id/
https://iaid.kemlu.go.id/

 

[katarabhumi]

Indonesia Receives IDR 10 Trillion Foreign Capital in January
10 January 2020 22:48 WIB

TEMPO.CO, Jakarta - Bank Indonesia (BI) Governor Perry Warjiyo said that Indonesia has received IDR 10.1 trillion in foreign capital as of January 9, 2020, which he argued was due to the improving level of trust from global investors.

"Update on Indonesia's foreign portfolio inflow as of January 9 is IDR 10.1 trillion, comprising IDR of 10 trillion in state securities; IDR 1,3 trillion in shares, and several drops in SBI. This shows a large amount of foreign capital entering Indonesia and the confidence shown by investors," said the BI governor on Friday, January 10, 2020.

According to Perry, the forecast on the flow of foreign capital will further strengthen Indonesia's first-quarter of 2020.

Other than the improving foreign investors' confidence, the Bank Indonesia governor said the Indonesian financial market portfolio result will yield attractiveness compared to other countries, as the large flow of investments will invite more foreign capitals to Indonesia.

https://en.tempo.co/read/1293663/indonesia-receives-idr-10-trillion-foreign-capital-in-january

+++


SoftBank’s Son Wants to Help Indonesia Build a New Smart Capital
10 January 2020

SoftBank Group has joined a growing list of global investors keen to participate in building a new $34 billion capital in Indonesia.

SoftBank Chief Executive and founder Masayoshi Son met Indonesian President Joko Widodo in Jakarta on Friday and expressed the serial investor’s interest in being part of the project. Son, who met the president for a second time in six months, said SoftBank wanted to support the building of a smart and green city loaded with artificial intelligence, although didn’t say how much his group would invest.

Indonesia is set to begin construction of the new capital on Borneo island as Widodo seeks to ease pressure on the congested and sinking Jakarta, the current capital. Regular flooding in the Jakarta metropolitan area, home to almost 30 million people, and the need to spread economic growth beyond the main Java island have prompted Jokowi, as the president is known, to fast-track the capital relocation.

The new city will be dotted with world-class educational institutions, modern hospitals, botanical gardens and backed by a environmentally-friendly transportation system with only electric vehicles, according to officials. Investors from China, the Middle East and the U.S. have shown interest in developing the city, Coordinating Minister for Maritime Affairs and Investment Luhut Pandjaitan has said.

“We didn’t discuss specific numbers,” Son told reporters. The discussion with Jokowi centered around building a smart city using the newest technology that will be green and supported by lots of artificial intelligence, he said.

SoftBank’s investment in the new capital will be in addition to the $2 billion the group has committed for the development of electric vehicles and renewable energy sectors in Indonesia, Son said.

The government has identified about 256,000 hectares of land on the island of Borneo for the yet-to-be-named capital -- about four times the size of Jakarta. Jokowi is counting on private and state-owned entities to bear about 80% of the cost of building the capital. Authorities plan to begin construction of the new city by the end of 2020 and relocate the capital in phases from 2024.

https://www.bloomberg.com/news/arti...s-to-help-indonesia-build-a-new-smart-capital

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