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The Japan Bank for International Cooperation (JBIC; Governor: HAYASHI Nobumitsu) on May 21, taking the opportunity of the G7 Hiroshima Summit, signed a memorandum of understanding (MOU) with the Nusantara National Capital Authority of Indonesia (NNCA; Head: Bambang Susantono) to promote the development of Indonesia's new capital city. The documents were exchanged in the presence of the president of Indonesia, H.E. Mr. Joko Widodo. The MOU aims to enhance relations between JBIC and the NNCA for promoting the development of the new capital of Indonesia.
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Indonesia is planning to move its capital from Jakarta to Nusantara on the island of Kalimantan for multiple reasons, including easing the overpopulation and the over concentrated industrialization on the island of Java. The NNCA is playing a key role in promoting the plan.
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The relocation of the capital city will also serve to resolve Indonesia's social issues, such as traffic congestion and air pollution attributable to overpopulation in Jakarta. In the Fourth Medium-term Business Plan released in June 2021, JBIC aims to support projects that contribute toward resolving social issues. The signing of the MOU is in line with the plan.
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As Japan's policy-based financial institution, JBIC will continue to provide financial support to create business opportunities and promote business for Japanese companies in a variety of sectors, including the development of the new capital city in Indonesia, by enhancing relations with Indonesia and the NNCA through multiple means.
