The Government of the United Arab Emirates (UAE) has announced that it will fund infrastructure work on Indonesia’s new capital city project in Kalimantan through an USD10 billion commitment to the Indonesia Investment Authority (INA), the country’s sovereign wealth fund. Part of the funds will be allocated to finance the new capital project and the remaining will be used to finance infrastructure, food security, logistics, E-learning and digital infrastructure projects in the area.
The Government of UAE is also prepared to provide advice and assistance in the development of the new capital, as well as aid in the construction of key structures such as data centres.
The capital city project recently lost a key investor when Japan-based Softbank Group pulled out due to insufficient return on investment (RoI). Since then, the Government of Indonesia has appealed to the Governments of UAE and Saudi Arabia as well as private investors for additional funding for the project.
Indonesia’s new capital city project is expected to cost over USD32.6 billion, with just a fifth of the total financing coming from the national budget and the remaining to be financed through private investors.
