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The CEO of SoftBank, Masayoshi Son, confirmed the offering to invest in the new capital of Indonesia. (Image via Money Inc)
SoftBank to invest $40 billion in Indonesia's new capital
On Friday, Japan’s conglomerate holding, SoftBank, offered to invest US$40 billion in the development of the new capital of Indonesia. When meeting President of Indonesia, Joko Widodo (Jokowi), the founder and Chief Executive Officer (CEO), Masayoshi Son, hinted at partnering with the Indonesian government as the funder.During a news briefing, Indonesia’s Coordinating Minister for Maritime Affairs and Investment, Luhut Binsar Pandjaitan, confirmed the amount offered by SoftBank. However, regarding the specific sector, Luhut did not know which one will SoftBank invest in.
Not only SoftBank but also other foreign investors from China and other parts of the Asian region, the Middle East, and the United States (U.S) had shown their interest in investing in the new city.
Son and the former Prime Minister of United Kingdom (U.K), Tony Blair, were appointed as the steering committee to supervise the development of the new capital in East Kalimantan. They partner with Abu Dhabi’s Crown Prince, Mohammed Bin Zayed.
SoftBank’s CEO hinted that he would invest in technology for a cleaner city and artificial intelligence (AI) development.
In August 2019, Jokowi revealed a surprising plan to transfer the capital from the crowded Jakarta to East Kalimantan. Not to mention, Jakarta is prone to earthquakes and flooding. Moreover, the ground level is sinking slowly due to the uncontrolled extraction of groundwater.
Unable to handle the flood properly, January’s flooding took the lives of more than 60 people and 500.000 people displaced.
The relocation to a 256,000 hectares, almost four times bigger than Jakarta, will need roughly Rp466 trillion. No dilly-dallying, Jokowi wanted the construction and development to start in 2020.
Source: https://bit.ly/2TGiKIj
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