Dubai and Indonesia to Transform Nusantara into Global Financial Center

JAKARTA, RAKYAT NEWS — The Ibu Kota Nusantara (IKN) Authority and the Dubai International Financial Centre (DIFC) have established a strategic partnership through the signing of a Memorandum of Understanding (MoU). This agreement aims to provide consultation services and knowledge to the IKN Authority for the development of a financial center in Nusantara, East Kalimantan.

Acting Head of the IKN Authority, Basuki Hadimuljono, stated that the DIFC, a leading global financial hub in the Middle East, Africa, and South Asia (MEASA) region, has entered into this strategic partnership by signing an MoU in Dubai, United Arab Emirates (UAE). This event marks a significant milestone in enhancing international financial cooperation.

“This MoU represents a crucial step for Indonesia in establishing Ibu Kota Nusantara as a premier international financial center. Our collaboration with DIFC will play a vital role in creating an attractive investment environment, promoting sustainable development, and contributing to the global financial landscape,” said Basuki in in Jakarta

The agreement was signed at the DIFC office in Dubai by DIFC Governor Essa Kazim and Acting Head of the IKN Authority Basuki Hadimuljono. The signing was witnessed by Minister of State-Owned Enterprises Erick Thohir, Deputy for Funding and Investment of the IKN Authority Agung Wicaksono, Expert Staff to the Minister for Technology, Industry, and Environment of the Ministry of Public Works and Housing Endra S. Atmawidjaja, DIFC Authority CEO Arif Amiri, and DIFC Authority Chief Business Development Officer Salmaan Jaffery.

The MoU outlines a collaborative framework aimed at advancing mutual interests and the Nusantara Financial Center in Nusantara. Key areas of collaboration detailed in the agreement include the exchange of expertise in the operations of international financial centers, regulatory frameworks, and business models to enhance operational efficiency and innovation.

Additionally, the development of mechanisms to allow entities from DIFC and the IKN Authority to establish registered business operations in each other’s jurisdictions, facilitating seamless business integration and participation in global exchanges, as well as collaboration on trends, legislation, and regulations in international financial services to stay aligned with global developments.

Commenting on the partnership, DIFC Governor Essa Kazim noted that the UAE and Indonesia are collaborating and innovating to drive economic growth and social impact in both countries. As a leading global financial hub in the MEASA region, DIFC is well-positioned to facilitate significant opportunities through this strategic partnership.

Minister of State-Owned Enterprises Erick Thohir and DIFC Authority CEO Arif Amiri emphasized the importance and strategic value of this partnership, highlighting its potential to stimulate economic growth and drive innovation through international collaboration.

The Nusantara Financial Center is planned to be strategically located in the Second Development Area within the expansive Nusantara region, covering 252,000 hectares, offering significant investment opportunities. This financial district will occupy approximately 260 hectares within a broader business and financial center spanning 3,000 hectares.

The foundation for the Nusantara ecosystem has been strengthened by substantial domestic investments, with hotels and hospitals set to commence operations this year. The reception of over 424 Letters of Intent reflects high interest from investors, including foreign investors, affirming the global appeal and potential of the Nusantara Financial Center.

The agreement with DIFC marks the beginning of a transformational journey towards creating an investor-friendly environment in the Nusantara Financial Center, poised to attract global investors and ensure sustainable growth and development. (Uki Ruknuddin)