Indonesia is calling for Bruneian businesses to invest in its new capital city project the Ibu Kota Nusantara (IKN), which is to be located in East Kalimantan, Borneo, and is slated to be ready in August next year.
The Indonesian Embassy in Brunei Darussalam on Monday held an investment forum entitled Investing in Nusantara Capital City (IKN) with a panel of speakers consisting of members of the Nusantara Capital City Authority (OIKN), a cabinet-level agency tasked with managing and governing the future capital, Nusantara.
Present at the event which was held at the Rizqun International Hotel were industry leaders from the sultanate’s public and private sectors.
In his welcoming remarks, outgoing Indonesian envoy Dr Sujatmiko said that a number of investors from countries including China, Japan, South Korea, Singapore and even Malaysia have already pledged to invest in the new capital.
He added that with Brunei Darussalam being situated in Borneo, the new Indonesian capital should be a matter of interest to the sultanate as its development will pave the way for economic growth of the whole island.
“With the new capital city now located in east Borneo, its development will spell economic benefit primarily for our neighbours namely because the new capital will also bring with it a new mindset,” he told the Media Star in an interview.
“The IKN is looking to put the environment at the forefront; it will be a green and smart city that promotes ecotourism, with new and upcoming projects that will hopefully change the economic landscape of Borneo,” the envoy added.
Dr Sujatmiko went on to express his hopes that the IKN would become a platform for future business collaborations between Brunei Darussalam and Indonesia, noting how the trade volume between the countries has steadily increased over the years.
He said that in 2018 trade volume between Brunei and Indonesia stood at USD$81.3 million and that the number has increased to USD$834.9 million currently.
Among the attendees of the event was the Brunei Darussalam BIMP-EAGA Business Council (BEBC) which felt optimistic about the investment opportunities provided by the IKN, despite noting finance being an immediate handicap for most Bruneian businesses.
“We (BIMP-EAGA) however believe that we can seize opportunities from the new capital city through a joint funder or joint finance,” explained the Head of the Fisheries Cluster of the BEBC, Pengiran Haji Norahlik Pengiran Haji Ahmad
“The moment we found out about the IKN, we started reaching out through our networks for potential partners because we believe that there are a lot of potential areas that we can get into, such as solar, ” he said.
He then expressed hopes that with Indonesia’s future capital being physically closer to the sultanate, it will strengthen connectivity between the two countries by establishing direct routes between Brunei and Kalimantan.
“Direct flights would hopefully foster more collaborations among our countries’ businesses and businessmen because as it stands, we have to transit in Malaysia or Singapore before heading to Jakarta and finally taking a domestic flight to Balikpapan. It is an issue,” he added.
Wafi Wasil
BANDAR SERI BEGAWAN
MEDIASTAR
