Thursday, 23 January 2020 | 08:15 WIB

South Korea Agrees to Assist in Developing Indonesia’s New Capital City

South Korea Agrees to Assist in Developing Indonesia's New Capital City (akurat)

BUSAN, NETRALNEWS.COM - Through a memorandum of understanding (MoU) on technical cooperation signed at a bilateral meeting of South Korean President Moon Jae-in and Indonesian President Joko 'Jokowi' Widodo in Busan last November, South Korea confirmed its readiness to assist in the development of the new capital of Indonesia. The new capital city will be located in East Kalimantan.

In the bilateral meeting held on the sidelines of the ASEAN-South Korea summit, President Jokowi expressed his desire that South Korean entrepreneurs join in investing in the new capital of Indonesia.

"With the signing of the MoU between the two governments, South Korea plans to provide various information and experiences for developing a capital city that is smart, green, inclusive, and sustainable," said South Korean Ambassador to Indonesia Kim Chang-beom in Jakarta on Tuesday. (01/14/2020).

South Korea is a country that has a similar experience in relocating the its capital city.

However, instead of completely relocating the country's capital as planned by Indonesia, South Korea built an administrative center called the Sejong City.

Located 120 kilometers from Seoul, Sejong was established in 2007 in northern Chungcheong Province to reduce congestion in the current capital and encourage investment in the central part of the country.

Since 2012, the South Korean government has relocated many ministries and institutions to Sejong, but many are still in other cities, especially Seoul where the National Assembly, President's Office, and many important government bodies remain.

"From that experience, we want to share with Indonesia not only about best practices (in moving the capital), but also from the mistakes we made," Ambassador Kim said.

So far, the South Korean side has not prepared physical investment cooperation, considering that the development process of the new capital city of Indonesia is still at a very early stage.

However, the MoU signed by the two countries is expected to encourage cooperation between the government and the private sector (PPP) for the development of a new capital city.

"We don't have a (investment) plan so far, since basically Indonesia's plans are extraordinary. If the plan is ready, there will be many offers from Indonesia to its partners to contribute to development, in terms of housing, roads and railways," Kim said.

To support the development of Indonesia's new capital city, South Korea has offered cooperation in three priority areas, namely design, water management, as well as integrated mass transportation and housing.

"South Korea is known for speed and efficiency. We are also experienced in mobilizing financial resources and managing loans for infrastructure projects," Kim said, as reported by Antara.