Indonesian President Joko Widodo recently visited Singapore for a leaders’ retreat to discuss economic and political ties between the two countries. During the visit, he made a renewed pitch for his Nusantara vision, a concept that aims to strengthen Indonesia’s maritime economy by developing ports and shipping lanes across the archipelago.
Widodo also announced that Singaporean investors had expressed interest in investing in Indonesia’s new capital city project, which aims to move Indonesia’s capital from Jakarta to a new location on the island of Borneo. According to Tempo.co English, Widodo received 20 letters of intent from Singaporean investors regarding the project.
Indonesia and Singapore also signed a deal on solar photovoltaics (PV) and energy storage, as reported by The Jakarta Post. The agreement is part of Indonesia’s push towards increasing renewable energy, with a goal of reaching 23% renewable energy in its energy mix by 2025.
The Nusantara vision, which was first introduced by Widodo in 2014, seeks to connect Indonesia’s numerous islands and strengthen the country’s maritime industry. The concept has been compared to China’s Belt and Road Initiative, a massive infrastructure project that aims to connect China with the rest of Asia and beyond.
Widodo’s renewed pitch for the Nusantara vision comes as Indonesia faces economic challenges amidst the COVID-19 pandemic. The country’s economy contracted 5.32% in the second quarter of 2020, and the government has announced a $47.6 billion stimulus package to boost the economy.
The new capital city project, which is estimated to cost around $33 billion, is seen as a major part of Indonesia’s economic development plans. The project aims to address the issues faced by Jakarta, such as overpopulation and environmental degradation, by moving the capital to a new location on the island of Borneo.
Foreign investment in the project is expected to play a significant role, with the Indonesian government seeking to attract private sector investment from both domestic and foreign sources. The letters of intent from Singaporean investors indicate a keen interest in the project from abroad.
Indonesia and Singapore have long-standing economic ties, with Singapore being one of Indonesia’s top trading partners. The two countries have also worked together on various infrastructure projects, such as the Kendal Industrial Park in Central Java.
The solar PV and energy storage agreement between the two countries is another example of their collaboration on renewable energy. The deal aims to facilitate the development of solar PV and energy storage projects in Indonesia, with the goal of increasing renewable energy in the country’s energy mix.
Overall, Widodo’s visit to Singapore and the agreements signed between the two countries demonstrate Indonesia’s commitment to economic development and collaboration with its neighbors. The Nusantara vision, with its focus on maritime industry and infrastructure development, is a key part of Indonesia’s plans for the future. With foreign investors showing interest in the new capital city project, Indonesia remains a promising destination for investment in the region.
