Jakarta (VNA) - A memorandum of understanding (MoU) on cooperation has been signed between the Land Bank Authority of Indonesia and J Trust Group of Japan to develop Penajam Eco City, designed as a commercial hub to serve as the economic engine of Indonesia's new capital.
The MoU is part of the Indonesian Government’s efforts to attract investors for the Nusantara capital megaproject.
Signed on June 26, it aims to support the eco-city development project in North Penajam Paser regency, East Kalimantan province.
Under the partnership, the group’s local subsidiary PT J Trust Consulting Indonesia is to introduce and curate potential Japanese investors for the project. A separate subsidiary PT Bank J Trust Indonesia is to provide financing facilities to investors.
Takeshi Ikeda, President Director of J Trust Consulting Indonesia, said that the partnership will contribute to the country’s economy and support the development of the new capital. It is also expected to promote economic programmes and activities involving Japanese investors.
Parman Nataatmadja, head of the Executive Body of the Land Bank Authority, said the Penajam Eco City is expected to become a commercial hub and new economic engine thanks to its close proximity to the new capital and Naratetama Airport, an important transport facility for Nusantara.
The eco-city will include zones designated for different purposes, including 1,000ha for trade centres, 621ha for Nusantara Airport, and 507ha for protected forest.
Indonesia hopes that Japan will be a close partner in investments in the archipelago nation. Japan’s substantial investment commitments are considered an impulse for the two countries’ partnership./.
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