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SoftBank Corp. Resigns, Cancels Investment in the Capital of the Archipelago

Jakarta, CNBC Indonesia – SoftBank Group has confirmed that it will not invest in the project for the new capital city of Indonesia, East Kalimantan. SoftBank Grouo’s resignation was announced on Friday (11/3/2022), quoted by Reuters.

They did not explain in detail the decision to cancel investment in the capital city of the archipelago, but SoftBank ensured that it would remain committed to and support the development of start-up companies in Indonesia.

Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan in an interview with Bloomberg this week confirmed the news of SoftBank’s withdrawal from the capital city mega project.

“There are no more stories about Masayoshi [CEO SoftBank]he left,” said Luhut, who did not specify SoftBank’s withdrawal from the new capital project.

In 2020, SoftBank Corp was rumored to be investing US$ 100 billion or equivalent to Rp. 1,400 trillion in the new capital city. This news was conveyed by Coordinating Minister Luhut Pandjaitan himself.

“Because of him [Masayoshi] I kept insisting that he wanted to invest almost US$ 100 billion. I think it’s too good to be true,” he said.

Photo: President Joko Widodo accompanied by a number of ministers received the CEO of SoftBank Japan Masayoshi Son, Friday (10/1) morning. (Press Bureau of the Presidential Secretariat/Muchlis Jr.)
President Joko Widodo accompanied by a number of ministers received the CEO of SoftBank Japan Masayoshi Son, Friday (10/1) morning. (Press Bureau of the Presidential Secretariat/Muchlis Jr.)-

SoftBank CEO Masayoshi Son even had a special meeting with Jokowi on January 10, 2022. During the meeting, he expressed his interest in working on the new capital city.

“Thank you so much for inviting us. […] I think the capital city of Jakarta has an important history, and several other things,” Masayoshi said in front of Jokowi.

“So, a new project [pemindahan Ibu Kota] What you prepared I think could be an opportunity that we can discuss further, what the idea is,” he explained.

The head of state also indirectly explained the reason for the government to move the location of the new capital city, which is located in Sepaku District, North Penajam Paser Regency, East Kalimantan.

“Jakarta’s land area is now 66,000 hectares and if we compare it with the location of the new capital city, the land area reaches 256,000 hectares,” said Jokowi.

[Gambas:Video CNBC]

(Cha Cha dance)


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