Indonesia sets up agency to handle investment in new capital hinh anh 1An aerial view of East Kotawaringin, East Kalimantan province, the area chosen to house the new capital of Indonesia (Photo: AFP/VNA)

Jakarta (VNA) – The Indonesian Government will introduce a special agency whose main task is to deal with foreign and domestic investment in the new capital city in East Kalimantan province.

Speaking after a cabinet meeting on February 26, National Development Planning Minister Suharso Monoarfa said the new agency will have powerful authority to license potential investors without the consent of the existing Investment Coordinating Board (BKPM).

He noted that investors from the Republic of Korea, Japan, Spain, the US and Germany have expressed interests in taking part in the construction of the new capital city. However, no deal has been made because the government is still working on selecting projects that need foreign investment and determining the financing schemes.

Chief investment minister Luhut Binsar Pandjaitan said the new agency will be led by an official of the ministerial level, and President Joko Widodo is currently selecting candidates.

Suharso said the government expects to carry out the construction of basic infrastructures of the new capital later this year after the master plan is finalised.

If everything goes as planned, by the first half of 2024, the new city will be able to function as the new capital, according to him.

The new capital city will be built in a new area that traverses North Penajam Paser and Kutai Kartanegara districts in East Kalimantan.

The capital relocation project is expected to cost the government around 33 billion USD, 19 percent of which to be paid for by the state budget and the rest by local and foreign investors./.