Of that, Tengku Zafrul says two companies have passed the final evaluation stage, with investment potential of RM7.79 billion and RM10.47 billion, respectively. – Bernama photo
KUALA LUMPUR (Dec 11): A total of 25 companies from Malaysia have sent letters of intent (LOI) to invest in Indonesia’s Nusantara Capital City (IKN) so far, said Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz.
Of that, he said two companies have passed the final evaluation stage, with investment potential of RM7.79 billion and RM10.47 billion, respectively.
“Proposed activities or industries (for investment in IKN) include energy, urban development, manufacturing, infrastructure, waste management solid and consulting services.
“The involvement of companies from Malaysia in the development of IKN is expected to boost bilateral trade and investment relations between Malaysia and Indonesia through the trade of goods and services, including skilled manpower from Malaysia,” he told Dewan Negara when wrapping up the debate on the Supply Bill (Budget) 2025 for the Ministry of Investment, Trade and Industry (MITI).
In 2023, Tengku Zafrul said Indonesia was Malaysia’s third largest trading partner in the Asean region and the seventh largest globally, with total bilateral trade amounting to RM111.21 billion.
“(We are) aware that the development of IKN can bring economic opportunities in the Borneo region, especially for Sarawak and Sabah, therefore the government through MITI has held several discussion sessions with stakeholders to identify steps – steps to realise Malaysia’s involvement so that it can bring the best economic returns to all parties,” he added.
Based on information from the IKN Authority (OIKN), he noted that the total targeted investment for IKN is US$32 billion and will cover several sectors, including renewable energy, telecommunications network, transportation, housing, water treatment and waste management.
Tengku Zafrul also assured that the recent change in leadership of the Indonesian government will not affect the planning and development of IKN. “Indonesia will continue to intensify promotional activities to bring foreign investment to IKN. The focus at the moment is the construction of basic infrastructure at IKN such as water resources, electricity and communication,” he said.
“Investment approvals at IKN are targeted according to sectors as outlined under the IKN development master plan. The sector that has yet to receive investment commitments is social and public facilities. OIKN welcomes investment from Malaysian investors who have experience in developing and operating theme parks and recreational parks,” he added.
Meanwhile, he said the local textile and clothing industry continued its positive momentum in the first half of 2024, with the value of investment increasing significantly to RM540.6 million, exceeding the total investment of the previous year.
“Investments during that period involved 12 projects and were expected to create 549 job opportunities. In 2023, a total of 15 manufacturing projects in the textile and clothing sector were approved by the Malaysian Investment Development Board (MIDA) with a total investment of RM472.6 million and were expected to create 889 new job opportunities.
“This proves that the textile and clothing industry not only continues to grow but also contributes significantly to job opportunities in the local market and the country’s economic growth as a whole,” he added. – Bernama
The post Tengku Zafrul: 25 Malaysian companies have sent letter of intent to invest in Indonesia’s Nusantara appeared first on Borneo Post Online.
