JAKARTA: Indonesian President Joko Widodo signed a deal to involve Dubai’s financial hub Nusantara in a new capital project during his visit to the United Arab Emirates, his office said on Thursday.
Widodo arrived in the United Arab Emirates on a two-day working visit on Tuesday and was hosted by the Gulf nation’s president, Sheikh Mohammed bin Zayed Al-Nahyan.
Indonesia’s Cabinet Secretariat said in a statement that the two countries had agreed to „significant bilateral cooperation in various fields”, which listed eight agreements signed during the visit, including renewable energy, tourism ecosystems, payment systems and „MoU”. (Memorandum of Understanding) International Financial Center Dubai International Financial Center Authority and Nusantara National Capital Authority.
Southeast Asia’s largest economy is moving its capital to the island of Borneo to replace congested and sinking Jakarta on the island of Java, a $33 billion mega-project scheduled for completion in 2045.
The massive undertaking is expected to rely mostly on private investors, with government funding slated to cover 20 percent of the total cost.
„In the field of strategic investment, UEA’s contribution to the development of the Indonesian capital is increasingly significant,” Widodo said at X.
With construction underway and the central government expecting operations to begin in the new city by 2024, the new capital has begun work in the financial hub of Indonesia’s largest state-owned banks, Bank Mandiri, Bank Rakyat Indonesia and Bank Negara. Indonesia – broke ground on their new corporate offices earlier this year.
The financial center will cover 260 hectares within the city’s sprawling business district.
Through a memorandum of understanding between the Dubai International Financial Center and the Nusantara Capital City Authority, Indonesia and the UAE are „creating a new framework to ultimately develop two financial ecosystems,” DIFC Governor Essa Qasim said on Thursday.
As MEASA’s (Middle East, Africa and South Asia) global leading financial hub, DIFC is positioned to facilitate significant opportunities as it collaborates and innovates to drive economic growth and social impact in both the UAE and Indonesia. strategic partnership,” he said.
The ambitious move to move the capital to the middle of the jungle, about 2,000 km from Jakarta, is a flagship project of Widodo, who officially launched it in 2019.
The first phase of construction is scheduled for completion in 2024, widely seen as an attempt by the president to stamp his legacy before the end of his second and final term in October this year.
During a visit to the UAE, Sheikh Mohammed presented Widodo with the Order of Zayed for his efforts to strengthen UAE-Indonesian relations.
The order is the highest civilian honor in the UAE and is awarded to leaders and heads of state.
During Widodo’s second term, the countries signed a comprehensive economic partnership agreement in July 2022 – Indonesia’s first free trade agreement with a Middle Eastern country.
„By building closer and lasting ties between the UAE and Indonesia, we have explored opportunities to further expand our economic partnership,” Sheikh Mohammed said in X.
„I express my sincere gratitude to President Widodo for his tireless efforts during his tenure to strengthen the bond between our two countries.”
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