Indonesian, Malaysian leaders witness handover of Letters of Intent on new capital

9 January 2023

Indonesia and Malaysia have signed 11 Letters of Intent (LoI), of which 10 Malaysian investors will participate in the development of Indonesia’s New Capital City.

Jakarta (Indonesia Window) – Indonesian President Joko Widodo and Malaysian Prime Minister Anwar Ibrahim at the Bogor Presidential Palace, West Java, on Monday witnessed the handover of 11 Letters of Intent (LoI) from 10 Malaysian investors to participate in the development of Indonesia’s New Capital City.

“Eleven Letters of Intent (LoI) have been signed by the Malaysian private sector and submitted to the new capital authority, dealing with electronics, health, waste management, construction and property,” Widodo said in a joint press statement with Anwar Ibrahim.

The Letters of Intent (LoI) were handed over by the Malaysian Minister of Industry and International Trade, Tengku Zafrul bin Tengku Abdul Aziz, to the Head of the New Capital Authority, Bambang Suswantono.

The two neighboring countries also agreed on eight memorandums of understanding, including those in the fields of shipping, export-import financing, green energy and the development of the battery industry.

The eight bilateral memoranda of understanding include a memorandum between ASIC Offshore & Marine Sdn Bhd (Malaysia) and PT Dok Perkapalan Kodja Bahari (Indonesia), export-import Bank of Malaysia Berhad and the Indonesian Export Financing Agency, as well as collaboration between FGV Holdings (Malaysia) and PT Perkebunan Nusantara Indonesia.

The memoranda of understanding also include a memorandum between Citaglobal Berhad (Malaysia) and Indonesia Battery Corporation, AWC Berhad (Malaysia) and PT GKM (Indonesia), as well as AWC Berhad and PT Bintang Timur Investama (Indonesia).

Next up is the memorandum between AIROD Sdn Bhd (Malaysia) and PT Dirgantara Indonesia, as well as SIRIM Berhad and the Indonesian National Research and Innovation Agency.

On the occasion, President Widodo also congratulated Anwar Ibrahim who was inaugurated as Malaysia’s 10th Prime Minister in November 2022, and believed that the cooperation between the two countries would be even stronger under Anwar Ibrahim’s leadership.

According to President Joko Widodo, Malaysia is not only Indonesia’s closest neighbor, but also belongs to one family and has a very strong bilateral relationship.

Reporting by Indonesia Window