Support IKN Development, Indonesia Pockets 5 MoU Investments From Japan

Cooperation illustration (photo: Doc. Unsplash)

JAKARTA - Head of the Archipelago Capital Authority (OIKN) Bambang Susantono said, as many as five Memorandums of Understanding (MoU) have been signed by the Indonesian Government, in this case OIKN with Japanese bodies and companies.

In addition, there are 24 Letter of Intent (LoI) that have been handed over by Japanese companies to OIKN in front of Indonesian President Joko Widodo (Jokowi).

The five Japanese companies that signed the MoU include Japan International Cooperation Agency (JICA), Japan Bank for International Cooperation (JBIC), Japan International Association for the Industry of Building and Housing (JIBH), Japan Conference on Overseas Development of Eco-Cities (JCODE), and Urban Renaissance Agency (UR).

"Currently, the archipelago has the best investment opportunities in Indonesia. This is reflected in various incentives provided by the government for investors," Bambang said in a written statement, Monday, May 22.

Bambang said the archipelago was a "life laboratory" that allowed partners to experiment with new ideas and innovations.

"We welcome various types of new technologies to be implemented in our city. Thus, our partners have the opportunity to make the archipelago a place to experiment in channeling ideas and innovations," he said.

In addition, the archipelago aims to play an active role in three global efforts, namely in overcoming climate change, rejuvenating biodiversity, and achieving Sustainable Development Goals (SDGs).

The signing of the MOU is the beginning of Indonesia-Japan cooperation in the IKN development project. "In the future, I hope that the Japanese delegation can return to IKN to explore more deeply about the development and opportunities for cooperation and investment," he said.

Meanwhile, JICA Senior Executive Vice President Yamada Junichi said that his party would provide investment support in Indonesia, especially at IKN.

"Investors under JICA are ready to support investment in Indonesia, especially in IKN in the infrastructure sector, such as the revitalization of Balikpapan Airport and also the energy sector, especially the Power Supply Facilities," he said.

In line with Yamada Junichi, Chairman of the Board JBIC Tadashi Maeda expressed his commitment to support IKN development, especially in realizing IKN as a carbon neutral city by focusing investment in renewable energy, such as hydropower.