Source: Antara News, The Jakarta Post

Link to original Antara News HERE

Link to original The Jakarta Post News HERE

The Memorandums of Understanding (MoUs) were signed by the IKN Authority (OIKN) with the Japan International Cooperation Agency (JICA), the Japan Bank for International Cooperation (JBIC), the Japan International Association for the Building and Housing Industry (JIBH), the Japan Conference on Overseas Development of Eco-Cities (J-CODE), and the Urban Renaissance Agency (UR). The LoIs involved 24 Japanese firms, though no further specifics were provided. 

The agreement was signed on the sidelines of the Group of Seven (G7) Summit in Hiroshima, Japan, over the weekend after President Jokowi had met with 33 Japanese delegates comprising of three government officials and representatives from 24 companies, four business associations and two financial institutions.  

State Capital Authority (OIKN) head Bambang Susantono said IKN, also known as Nusantara, offered the best investment opportunity in Indonesia as the Indonesian government had prepared various incentives for investors. He added that Nusantara would serve as a living laboratory for partners to experiment with new ideas and innovations. 

"We welcome various types of new technologies to be implemented in our city," he said in a press statement released on Monday. 

Executive Senior Vice President of the Japan International Cooperation Agency (JICA) Yamada Junichi said JICA investors were ready to support investment in Indonesia, specifically in IKN infrastructure. These include the revitalization of the airports and in the energy sector, specifically in terms of power supply facilities. 

Governor of the Japan Bank for International Cooperation (JBIC) Tadashi Maeda also expressed his commitment to supporting the development of IKN as a carbon-neutral city by focusing investments on renewable energy, such as hydropower. 

The idea for moving the Indonesian capital city was first mentioned by President Jokowi in 2019. The reason behind the relocation, according to the President, was to erase the "Java-centric" stereotype – a perception that economic development was happening only on the island of Java. The second reason was the fact that Jakarta, the current capital, was sinking and suffering from chronic congestion.  

Following the announcement, in August that same year, President Jokowi designated a part of Kutai Kartanegara Regency and Penajam North Paser Regency, in Kalimantan, as the location of the country's future capital, with the project estimated to cost as much US$33 billion.