Jayanty Nada Shofa, Jakarta – Indonesia recently tried to persuade French investors into taking part in the new capital city Nusantara, particularly in its mixed-use project, according to a press statement.

The city's authority body on Monday took French Ambassador to Indonesia Fabien Penone and around 20 business delegates on a tour to the capital that is now under construction. The French firms come from diverse industries, including energy, smart city technology, and eco-friendly materials, among others.

"They are coming from all aspects, not just as an investor, but also to do business [in Nusantara]," Bambang Susantono, the head of the city's authority body, referring to the mixed-use development.

According to Bambang, Indonesia plans on building a large shopping center at the mixed-use space in 2024. The 7.3-hectare area has also seen interest from potential investors. Indonesia is also offering investors 71 mixed-use clusters across the core government area (KIPP) of the to-be-built city that lies in East Kalimantan.

The trip also saw the handover of a letter of intent (LOI) from a French energy firm. This means that Indonesia has received a total of four LOIs from French investors. Nusantara overall has secured over 200 LOIs, 106 of which come from domestic investors.

Agung Wicaksono, the deputy chair for funding and investment, said French firms were curious about the incentives and ease of investing in Nusantara.

"They asked for information on the necessary documents so they can prepare their proposals. They will then make some calculations, and work on their business plan and feasibility studies. This would make it easier for them to negotiate, which will eventually lead to an investment," Agung said.

Matthieu Lavoine, the president director of logistics provider Sinarmas LDA Maritime, said that he would report back to the head office on Indonesia's commitment to the megaproject.

Arnaud Tripet, the deputy head of the economic department at the French Embassy in Indonesia, said a number of French companies had already invested in Indonesia but sought to take "a step further".

The city authority reported that this became the first on-site visit by potential European investors.

Government data shows French investment in Indonesia totaled $252.9 million in 2022.

Source: https://jakartaglobe.id/business/govt-tries-to-woo-french-firms-to-nusantaras-mixeduse-projec