Bahlil Says The UAE Will Fund New State Capital Of IDR 144 Trillion: Mr. Luhut Is Establishing Intense Communication

Investment Minister Bahlil Lahadalia (Photo: Instagram @bahlillahadalia)

JAKARTA - Investment Minister/Head of BKPM Bahlil Lahadalia said the United Arab Emirates (UAE) would participate in funding the new state capital (IKN) project in East Kalimantan, through an investment of USD 10 billion. This figure is equivalent to IDR 144 trillion (assuming an exchange rate of IDR 14.400 per Dollar).

Bahlil explained that the investment was part of the UAE's investment commitment to Indonesia with a total value of USD 44.6 billion as stated in the memorandum of understanding (MoU) with the Indonesian government. The amount is equivalent to IDR 642.2 trillion. The Memorandum of Understanding was pressed by both countries last week.

"Regarding IKN, out of the USD 44.6 billion, there are USD 10 billion in INA, a total of USD 18 billion. The USD 8 billion is clear around anything, USD 10 billion is still tentative to be included in IKN," he said in a virtual press conference, Thursday, November 11.

Bahlil explained that the UAE government still had to carry out very intense communication with the Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Panjaitan to allocate their investment in addition to the national capital.

However, he said, the UAE government still had to make very intense communication with Luhut to be able to allocate their investment apart from IKN.

"We haven't agreed on the figure yet, but from this 44.6 billion US dollars which allows entry into the 10 billion US dollar, it is still very loose at the other point it has broken down. communicate," he said.

Even so, Bahlil explained that the potential investment value from the UAE is very high. According to Bahlil, most likely the UAE will add value to the investment.

Because, said Bahlil, the government has explained directly to investors in the UAE regarding business licensing in Law No. 11 of 2020 concerning Job Creation.

"Rest assured that allocating investment value to foreign capitals is definitely more than what was committed at the beginning. Because the speakers are Mr. Jokowi, Mr. Luhut and the UAE the figure is more than 10 billion US dollars," he said.