JAKARTA: Putrajaya and Jakarta are hoping that their renewed and strengthened bilateral relations will widen the doors to shared opportunities in the development of Indonesia's new capital, Nusantara.
Prime Minister Datuk Seri Anwar Ibrahim is scheduled to hand over 11 inked letters of intent (LoI) valued at about RM1 billion to Jakarta for Malaysian companies to participate in Nusantara's development.
Malaysia is optimistic of benefiting immensely from Nusantara, in eastern Kalimantan, which is expected to be ready in 2024.
Malaysia is banking on at least 10 of its corporate players to participate in the new region's development.
They include Boustead Properties Bhd, which is hoping to be among the key players in Nusantara's property development, and Berjaya Corporation Bhd, which in its LoI is offering its expertise in solid waste management, drinking water and smart city technology.
Tenaga Nasional Bhd, meanwhile, has expressed to Jakarta its interest in the exploration and development of energy solutions across various technologies, including solar, gas, wind, hydro and battery storage.
Other Malaysian companies that have officially registered their interest were Pharmaniaga Bhd, which wants to provide Nusantara with affordable and quality healthcare products and services, Carsome, Olympic Cable Company, Success Electronics & Transformer Manufacturing Sdn Bhd, Alliance MEP (Sarawak) Sdn Bhd, Protasco Bhd and Reneuco Bhd.
Anwar, who is on a two-day official visit here, was accompanied by Foreign Minister Datuk Seri Dr Zambry Abdul Kadir and International Trade and Industry Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz.
Anwar, accompanied by his wife, Datuk Seri Dr Wan Azizah Wan Ismail, was greeted upon arrival in Jakarta today by Indonesian Public Works and Public Housing Minister Basuki Hadimuljono and Indonesian ambassador to Malaysia Hermono.
Also present was charge d'affaires of the Malaysian embassy in Jakarta, Adlan Mohd Shaffieq.
Indonesian President Joko Widodo will hold an official welcoming ceremony for Anwar at Istana Bogor, just outside of Jakarta, tomorrow.
This marks Anwar's first official visit abroad since becoming prime minister in November last year.
Anwar, in a social media post said he hoped his visit would strengthen the relationship between the two countries.
"We hope to explore new opportunities to cooperate through my discussions with President Joko Widodo, InsyaAllah."
Meanwhile, Anwar witnessed the handing over of signed memoranda of understanding (MoU), with a potential value of RM1.66 billion, between Malaysian companies and Indonesia's industrial players, which Malaysia is keen to partner with.
These joint-venture opportunities involve, among others, the shipping, plantation and technology sectors.
Malaysia, through AWC Bhd, is expected to work with PT GKM and PT Wing Indonesia to participate in the development of a Special Economic Zone in Nusantara. This cooperation is expected to focus on exploring the use of green energy, renewable and environmental projects in Indonesia in promoting a sustainable economy.
Zafrul expected to hand over the signed LoIs and MoUs concerning development in Nusantara to its chief authority, Bambang Susantono, witnessed by Anwar and Joko at Istana Bogor on Tuesday.
Meanwhile, Malaysia, through ASIC Offshore & Marine Sdn Bhd, is hoping to take a slice of the shipbuilding industry market share with their proposed joint-venture with PT Dok and Perkapalan Kodja Bahari.
The initiative valued at RM500 million (in two years) also involves ship repairs, financial investment for facilities, onshore and offshore engineering and ship repairs.
The Export-Import Bank of Malaysia Bhd and its Indonesian counterpart, Lembaga Pembiayaan Expor Indonesia, signed an MoU to strengthen their business cooperation through the exchange of information, experience and business connections.
FGV Holdings and PT Perkebunan Nusantara Indonesia, meanwhile, signed a memorandum of collaboration to increase the value of their subsidiaries and affiliates for mutual benefits.
They underlined that areas both parties would focus on include their principles of good corporate governance, as well as promoting a positive impact on their environmental and social targets.
Zafrul earlier witnessed Airod Sdn Bhd's and PT Dirgantara Indonesia's signing of a commitment of cooperation agreement related to the refurbishment, centre wing box replacement, technical training and technical assistance for their Lockheed Martin C-130 Modernisation Project, valued at US$150 million.
Also signed was an MoU between Citaglobal Bhd and Indonesia Battery Corporation for the proposed development of a battery manufacturing plant and battery energy storage system.
This could include the development, designing and building of an integrated turnkey manufacturing facility for battery cells, modules and packs.
Both parties are also expected to develop an integrated solution for a battery energy storage system through transfers of related technologies and know-how.
Penjana Kapital Sdn Bhd also inked an MoU with Indies Capital Partners and AC Ventures to establish a working cooperation to explore co-investment opportunities in Malaysia-Indonesia growth companies via existing and soon to be launched funds.
The potential co-investment value is pegged at RM500 million.