Breaking News
LAST CHANCE for Cyber Monday SALE: Up to 54% off InvestingPro! Register here
Investing Pro 0
Ad-Free Version. Upgrade your experience. Save up to 40% More details

Indonesian minister says SoftBank offering to invest up to $40 billion in new capital

Stock MarketsJan 17, 2020 06:22AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items

By Bernadette Christina

JAKARTA (Reuters) - SoftBank has offered to invest up to $40 billion in the new capital city Indonesia plans to build on Borneo island, a minister said on Friday, though the Japanese tech conglomerate said no figure had been suggested yet.

Indonesian President Joko Widodo announced in August plans to move the administrative capital to East Kalimantan province, on Borneo, to relieve Jakarta from "a heavy burden" due to overcrowding and pollution.

Indonesia has previously put the cost of moving the capital at $33 billion, but Luhut Pandjaitan, Indonesia's coordinating minister for maritime affairs and investment, said Softbank Group Corp had offered up to $40 billion.

"So we'll negotiate over the structure (of the investment). It could amount to $30-40 billion," he told reporters.

A spokeswoman for SoftBank said the group had not suggested specific numbers, echoing comments by CEO and founder Masayoshi Son last week.

"We're not discussing the specific numbers yet, but a new smart city, newest technology, clean city, with a lot of AI (artificial intelligence), that's what I'm interested in supporting,” Son said during a visit to Jakarta last week.

Pandjaitan said he would discuss the potential investment further with Son further on Monday at the World Economic Forum gathering in the Swiss resort of Davos and that President Joko Widodo will likely decide on the agreement in February.

Widodo said on Thursday that a planned sovereign wealth fund to finance infrastructure projects in Southeast Asia’s biggest economy will raise at least $20 billion once established, though Pandjaitan said it was still under discussion whether investment would be channeled through the sovereign wealth fund.

Widodo discussed plans to establish the fund with Abu Dhabi’s Crown Prince Sheikh Mohammed Bin Zayed al-Nahyan last weekend during an official visit to the United Arab Emirates.

Sovereign wealth funds are typically used by countries to direct funds from resource wealth such as oil, though Indonesia also plans to invite foreign investment into its fund.

To help attract investment, Indonesia has asked Abu Dhabi’s crown prince, former British Prime Minister Tony Blair and Softbank's Son to advise on plans to move the capital, ministers have said.

Planning minister Suharso Monoarfa said this week that Softbank was interested in providing self-driving vehicles for the capital.

In June, the self-driving car joint venture of SoftBank and Toyota Motor said it plans to begin operating in Southeast Asia this year.

Indonesian minister says SoftBank offering to invest up to $40 billion in new capital

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (1)
muhammad mohd isa
muhammad mohd isa Jan 17, 2020 7:12AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Hope Malaysia Next
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
Sign up with Email