The government is currently conceiving a fiscal and non-fiscal incentive scheme to attract investment and funding for the new capital Nusantara in East Kalimantan, according to an official.

“Conceived incentives must be attractive to investors but must also not violate the prevailing regulations,” Nusantara Capital City Transition Team’s Coordinator of Communication and Information Sidik Pramono stated here on Friday.

While steering clear of divulging information on the detailed scheme, the official noted that the government will complete the drafting soon and announce the scheme to the public.

“There are several incentives (in the scheme) that I could not disclose now. I hope (the scheme) would be announced soon,” he remarked.

Apart from completing regulations on funding incentives, Nusantara Capital Authority head Bambang Susantono and deputy head Dhony Rahajoe intensified dialogues with prospective investors for the new capital, Pramono revealed.

Susantono had also promoted the new capital to global enterprises while participating in the World Economic Forum in Davos, Switzerland, last May, he noted.

“Some prospective investors from various countries and industries have expressed their interest to contribute to the development of the new capital,” the coordinator stated.

Pramono then echoed the transition team’s optimism that the smart, sustainable, and green concepts of Nusantara City would attract foreign investors to invest in the new capital.

“As the new capital has a good concept as well as the government is committed, it will attract investors to the new capital,” he stated.

Earlier, Minister of National Development Planning/Head of the National Development Planning Agency Suharso Monoarfa stated that the government was drafting guidelines on incentives and disincentives for investors in the new capital.

“(Prospective investors) indeed will inquire about the guidelines. To make it firmer, we will refer to the president’s instructions. Earlier, the president had instructed us, and we hope the guidelines will be completed in two weeks,” Monoarfa stated on Monday (June 13).

The government has planned to proceed with the construction of the new capital in three stages. The first stage that will proceed until 2024 includes the construction of core infrastructures, such as the presidential palace, the parliament complex, government buildings, police and military headquarters, and a housing complex.

The second stage of the new capital development will take place during the 2025-2035 period, and the last stage will proceed during the 2035-2045 period.

The total budget required for the new capital reaches Rp466 trillion (US$31.2 billion), of which 19-20 percent will be procured from the state budget, while the rest of the funding will originate from investments and partnerships with the private sector.

Source: Antara News