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More foreign investors showing interest in Nusantara megaproject: Indonesia's new investment minister

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Channel News Asia - August 30, 2024

Calvin Yang, Singapore – More foreign investors are showing interest in the Nusantara megaproject, said newly-appointed Indonesian Investment Minister Rosan Roeslani.

Mr Rosan said he was confident about attracting more investments to Indonesia's new capital. This is despite critics casting doubts over the project's feasibility and challenges securing investors.

"There are some issues when you start creating a new capital city, but we believe all the issues have been resolved (and) have been sorted out," he told CNA on Wednesday (Aug 28), the last day of his visit to Singapore.

"In the beginning, local investors supported us in terms of investment. But now, foreign investors have started looking."

During his three-day trip, Mr Rosan met with various Singapore leaders and government officials, including Prime Minister Lawrence Wong. Discussions centred around areas of cooperation including renewable energy and carbon capture.

Political stability in spotlight after recent protests

But Mr Rosan's plans to bring Indonesia's economy to the next level comes amid mass demonstrations across the country, which have raised concerns among companies looking to invest.

"I believe peace and stability is one of our strong factors in doing business in Indonesia," said Mr Rosan.

"There's always ups and downs, but so far, we always manage these issues very (well) and very carefully."

Earlier this month, Indonesians flocked to the streets to protest a parliamentary decision to overturn a Constitutional Court ruling on age eligibility and electoral thresholds for the local elections.

The decision would have paved the way for outgoing president Joko Widodo's youngest son, 29-year-old Kaesang Pangarep, to run in the local elections. The current minimum age limit of 30 for candidates is preventing him from running in a regional contest in Central Java.

It would also block popular former Jakarta governor Anies Baswedan from running again against a candidate backed by President-elect Prabowo Subianto's coalition.

Indonesia's parliament has since shelved planned changes to the electoral laws.

"With open discussion, open communication, understanding what the differences (are)... I think somehow we always find those amicable solutions," said Mr Rosan.

"We always keep maintaining peace and stability in Indonesia."

Becoming a more open, transparent country

On whether Indonesia is becoming a more mature democratic society, he said this is an ongoing progress.

"Moving forward, I think we are very confident that Indonesia is becoming a more open country," he noted.

"We are becoming a more (democratic) country, and also at the same time, we are becoming more transparent in a lot of things."

During the interview, Mr Rosan, who was an ambassador to the United States from 2021 to last year, said the ongoing tensions between the US and China would have an impact on Indonesia's trade and investments.

"In Indonesia, we navigate this very carefully. We see that this tension will last quite long. This is our view," he said, adding that Indonesia cannot take sides.

"Based on our foreign policy, we would like to work with everybody... as long as it creates a mutual benefit for all of us and gives (prosperity) to all of us."

Source: https://www.channelnewsasia.com/asia/indonesia-nusantara-capital-foreign-investor-investment-minister-rosan-roeslani-prabowo-jokowi-457700

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