UAE to fund Indonesia’s new investment project | World

Minister of Investment and Head of the Indonesian Investment Coordinating Council (BKPM) Bahlil Lahadalia (Photo: Instagram @bahlillahadalia)

Jakarta (VNA) – The United Arab Emirates (UAE) will finance the New State Capital (IKN) project in Indonesia’s East Kalimantan with a $10 billion investment, according to the Minister of Investment and Head of the Indonesian Investment Coordinating Board (BKPM) ) Bahlil Lahadalia.

Speaking at a virtual press conference on November 11, Bahlil said the investment was part of the UAE’s investment commitment to Indonesia with a total value of $44.6 billion, as indicated in the memorandum of understanding with the Indonesian government.

The UAE’s investment commitment in IKN will be implemented through the Indonesian Investment Authority (INA), Indonesia’s new national investment fund. The INA will also manage approximately USD 18 billion of the USD 44.6 billion committed by the UAE.

Minister Bahlil said the UAE side may be interested in allocating its capital to construction projects at IKN, as well as information technology projects and green industrial parks.

Previously, Indonesian President Joko Widodo had repeatedly pressured the UAE to disburse investment capital at the IKN project.

According to Indonesian government estimates, the total budget for IKN development is $33.7 billion, of which only 19.2% comes from the state budget, 54.4% from public- private sector (PPP) and the remaining 26.4% from the private sector.

The Indonesian House of Representatives is considering a draft law on the IKN, which describes how the government will organize and manage the development phases, and raise investment capital for this project./.

ANV

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