Jakarta (ANTARA) - Nusantara Capital City Authority (OIKN) ​forged commitments with international investors to develop Nusantara, Head of Nusantara Capital City Authority Bambang Susantono said. ​​

"There are at least five countries which are currently in the middle of the (agreement) process, among which are South Korea, and then Japan, China, Germany, and also United Arab Emirates," he said, according to statement received here.

"We will invite many business investors to participate in the development of the city," Susantono said.

Nusantara’s development is backed with two sources of funding, the first one is the state budget for the basic infrastructures and facilities —which project is targeted until 2024— and the second is domestic investors, he added.

He affirmed that micro, small, and medium businesses can contribute to the new capital city development.

Susantono outlined the current agenda of collaboration that is being pursued by the authority, which includes creation of a blue print and master plan for the city, and promoting the progress towards Sustainable Development Goals.

He noted that Nusantara City will be a city which upholds its commitment in environment, social, and governance aspects in a consistent manner.

He also mentioned three focuses of investors, with the first item being the population of Nusantara City. In 2024, there will be some 200,000 people living in Nusantara, he said.

The second is access and connectivity. Susantono said that in 2024, there will be a toll road that connects Balikpapan to Nusantara, thus the round trip will only take 40 to 50 minutes.

The third is incentive stimulus, Susantono said.

"First, we have the law, a strong law, a legal basis for us to continue and guarantee the continuity of the Nusantara development project. Secondly, we give some incentives, which is more than the average of incentives in Indonesia," he said.

He noted that in Nusantara, with just Rp 10 billion (USD 673.6 thousand), one can get 20 to 30 years of tax holidays, whereas normally people will have to spend Rp 100 billion (USD 6.7 million). Moreover, the rate of return is capped at 11 to 13 percent, exceeding the normal rate, he added.

"I believe that this is interesting, according to the characteristics of your businesses, to invest in Nusantara City, Indonesia," he noted.

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Translator: Aji Cakti, Mecca Yumna
Editor: Azis Kurmala
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