New Chapter of Indonesia-Malaysia Economic Cooperation


President Joko Widodo and Malaysian Prime Minister Anwar Ibrahim held a meeting at Bogor Palace on Monday. After the meeting, Jokowi announced Malaysia's involvement in constructing the IKN Nusantara capital city project in Penajam Paser Utara, East Kalimantan. Malaysia's investment in the IKN project is contained in 11 Letters of Intent (LoI). "I welcome the interest of Malaysian investors," Jokowi said.

According to Jokowi, 11 LoIs have been signed by Malaysian private parties and submitted to the IKN Authority. The agreements are in the electronics, health, waste management, construction, and property sectors, with an estimated value of Rp 4.11 trillion. In addition, there are several memoranda of understanding in the fields of shipping, import-export financing, green energy, and battery industry development.

The following are the memoranda of understanding signed by the two countries:

  1. Cooperation opportunities between ASIC Offshore & Marine Sdn Bhd and PT Dok Perkapalan Kodja Bahari.
  2. Export-Import Bank of Malaysia Berhad and Indonesia Export Financing Agency.
  3. FGV Holdings and PT Perkebunan Nusantara Indonesia.
  4. Citaglobal Berhad and Indonesia Battery Corporation.
  5. AWC Berhad and PT GKM.
  6. AWC Berhad and PT Bintang Timur Investama.
  7. AIROD Sdn Bhd and PT Dirgantara Indonesia.
  8. SIRIM Berhad and Indonesia's National Research and Innovation Agency 8.

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