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New capital Nusantara catches Austria's attention: Envoy

Jakarta Globe - May 8, 2024

Jayanty Nada Shofa, Jakarta – Austrian companies have shown huge interest in investing in Indonesia's new capital Nusantara, according to its envoy on Wednesday.

Nusantara is now a work in progress, and the government is trying to look for investors – both from home and abroad – to fund the $33 billion capital relocation. Other countries are currently keeping a close eye on the future capital as Indonesia executes its arguably most ambitious infrastructure project.

Austrian Ambassador to Indonesia Thomas Loidl said the capital relocation had caught the attention of many companies from his country.

"Last November, I had the pleasure to visit Nusantara on the occasion of a visit by Austrian companies from various backgrounds, including information technology, construction, lighting business,... and also wastewater treatment," Loidl told reporters in Jakarta.

"I sincerely hope that there will be a very positive outcome for Nusantara and also Austrian companies ... but yes, there is a lot of interest among Austrian companies," Loidl said.

The diplomat did not go into details on whether these firms had struck a deal or submitted a letter of intent to invest in the new capital. However, Loidl claimed that Nusantara's progress recently made headlines in Austrian media, thus further piquing his country's curiosity about the project.

Last year, the Nusantara authority body sent a mission to Austria to nudge Vienna into partaking in the capital relocation. The Indonesian delegates held meetings with wastewater treatment firm Aqua Consult. The talks revolved around the possibility of having Aqua Consult set up an energy-efficient wastewater treatment facility in the new capital, the Nusantara authority body revealed at the time.

They also met with EEE Austria, a digital learning-based employee training firm that had already forged a partnership with the Indonesian Manpower Ministry.

According to government data, Indonesia secured $6.2 million worth of foreign direct investment (FDI) from Austria in the first quarter of 2024. This makes Austria the 32nd-largest source of FDI in Indonesia over the said period. The Austrian investment went to 116 projects, although the government did not specify which projects they were.

Source: https://jakartaglobe.id/business/new-capital-nusantara-catches-austrias-attention-envo