The MoU, which was signed here on Monday, becomes the legal framework for AIBC to Australian investors seeking to invest in Banten.
The MoU signing was witnessed by Deputy Investment Control and Implementation at Investment Coordinating Agency Azhar Lubis, Bantens Head of Investment Coordinating Agency Babar Suharso, and Austrade Senior Trade Commissioner Kym Hewett.
Babar said the MoU creates an important momentum for Banten, as it becomes, what he called, part of the backbone of regional development.
"The MoU is aimed to develop Tangerang district, especially in Kohod and Tanjung Burungg, in the Cisadane estuary," he said.
Babar said that, in addition to the development of the industrial zone, there is also a planned gas power plant project (3 X 450 MW) in an area of 700 hectares at the edge of Cisadane river.
"Hopefully the projects can spur the development of Tangerang, which shares a border with Jakarta," Babar said.
Meanwhile, BGD Director Sudibyo explained that with a total land area of 1,400 hectares, there are many investment opportunities for Australian companies.
"So, the MoU will be forwarded to whatever field they want to explore," he said.
According to Sudibyo, the Australian investors will also build urban areas.
Later on, he added, BGD will own the projects, together with Indonesian partner companies, while AIBC will coordinate some Australian private companies as investors.
"There will be an authority. The investors will have a building right for 40 years," he said.
Building right, or locally called "hak guna bangunan" is the right to use a building for a fixed period of time, which later has to be extended.(*)