Tokyo (ANTARA) - Public Works and Public Housing Minister Basuki Hadimuljono has informed that a Japanese company is currently studying the food estate project for supporting the new national capital Nusantara, which requires private sector investment.

"We have invited Japanese companies. There are currently two (companies) studying it, namely Salim Group (Indonesian conglomerate) and from Japan, Sumitomo Group," he said in Tokyo on Friday.

The food estate is located in Central Kalimantan on an area of 43 thousand hectares.

"This is not small; it needs investment and technology. Later, it (the food estate) can supply food to the new capital; it is closer (to the new capital) than Java," he said.

Hadimuljono made the statement after a meeting with several businesspersons, which was arranged by the Japan-Indonesia Association (Japinda), to invite investments in Nusantara, which is located in East Kalimantan.

He told the businesspeople that they only need to bring money and technology as Indonesia has prepared the land.

He said that investment from the private sector, including from abroad, is needed because the government's share in financing the development of Nusantara is only 20–30 percent.

Meanwhile, the remaining funding is meant to be sourced from the private sector, either through the Government Cooperation with Business Entities (KBPU) scheme or public-private partnerships.

The new capital project financed by the government is divided into two phases, Phase 1 and Phase 2, with a total investment value of Rp60.9 trillion (around US$3.88 billion)

In Phase 1, there are 43 projects with a total investment value of Rp24.5 trillion (around US$1.56 billion). The projects include toll roads, the Presidential Palace, the Presidential Office, and coordinating ministries' offices.

Meanwhile, in Phase 2, there are 45 projects with an investment value of Rp36.4 trillion (around US$2.32 billion), including a water treatment plant and pipeline network.

"For Phase 1, the progress is 53 percent. For Phase 2, because it just started, only 1.2 percent," he said.

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Translator: Juwita Trisna, Raka Adji
Editor: Tia Mutiasari
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