The indonesian minister said SoftBank to invest up to $40 billion in new capital

JAKARTA (Reuters) – SoftBank has offered to invest up to $40 billion, in new capital city of Indonesia is planning to build on the island of Borneo, a minister said on Friday, although the Japanese tech conglomerate, said a number had been proposed yet.

FILE PHOTO: The logo of SoftBank Group, Corp, is displayed at SoftBank World in 2017 conference to be held in Tokyo, Japan, on July 20, 2017. (REUTERS photo/Issei Kato/File Photo

The indonesian President is Either Widodo, announced in August plans to move the administrative capital for the province of East Kalimantan, on Borneo, to the relief of Jakarta, “a heavy burden” as a result of over-population and pollution.

Indonesia has previously said that the cost of the move of the capital from the $33 billion, Luhut Pandjaitan, Indonesia’s coordinating minister for maritime affairs and investment, said the Softbank Group Corp. had offered up to $40 billion.

“So we’ll have to negotiate the structure of the investment). It would be up to $30-40 billion,” he told reporters.

A spokeswoman for SoftBank, said that the group had not proposed specific numbers, in line with the comments made by the CEO and co-founder Masayoshi Son last week.

“We don’t discuss specific numbers yet, but it is a new smart city, with cutting-edge technology, clean city, with a lot of AI (artificial intelligence), and that’s what I’m interested in support it,” Son said during a visit to Jakarta last week.

Pandjaitan, said that he would meet to discuss the investment further, with a Son, continued on Monday at the World Economic Forum meeting in the Swiss resort of Davos, and that the President is Either Widodo is likely to decide the match in the month of February.

Widodo said on Thursday that a planned sovereign wealth fund to finance infrastructure projects in South-east Asia’s largest economy is set to increase by at least $20 billion has been established, even though Pandjaitan, said that it is still under discussion, whether investment should be channelled through the sovereign wealth fund.

Widodo discussed the plans for the setting up of the fund, the Abu Dhabi crown prince Sheikh Mohammed Bin Zayed al-Nahyan over the weekend during an official visit to the United Arab Emirates (uae).

Sovereign wealth funds can in turn be used by the countries to direct funds and source of wealth, such as oil, while Indonesia is also planning to invite foreign investment into the fund.

In order to attract investment, Indonesia has asked Abu Dhabi’s crown prince, the former British Prime minister, Tony Blair, and they turned him advice on the plan to move the capital, the ministers said.

The Planning minister, Suharso Monoarfa, said this week that Softbank was interested in the provision of self-driving vehicles on the nation’s capital.

In June, the self-driving vehicle, a joint venture between SoftBank and Toyota Motor, said it plans to start operating in South-east Asia this year.

– Additional reporting by Fransiska Nangoy and Sam Nussey, in Tokyo; Writing by Stanley Widianto; Editing by Ed Davies and Simon Cameron-Moore

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