Abu Dhabi Crown Prince Sheikh Mohammad bin Zayed will lead the steering committee of Indonesia's planned new capital city - Photo by Maritime and Investment Office.

JAKARTA (TheInsiderStories) – Abu Dhabi Crown Prince Sheikh Mohammad bin Zayed will lead the steering committee of Indonesia’s planned new capital city, officials said on Tuesday (01/14). The Prince has two members includes Japan’s Softbank founder Masayoshi Son and British former prime minister Tony Blair. They will under President Joko Widodo’s charge.

“The Crown Prince had expressed his willingness to lead the steering committee. The Committee will later provide advice and direction, and it is hoped that their presence will increase investors’ confidence to invest in the new capital city,” coordinating minister for maritime and investment affairs Luhut Binsar Pandjaitan said in a statement.

Pandjaitan hopes their presence includes Japan’s tycoon, Son, founder of SoftBank and chief executive officer of SoftBank Mobile, and Blair, British former prime minister in 1997-2007, served as a Middle Eastern envoy to the United Nations, Europe, United States, and Rusia, increase the selling value of the new capital city to investors to meet an estimated cost of Rp466 trillion (US$32.7 billion) for its construction.

“The President emphasized that in the construction of the new capital, the construction of government building and facilities would be funded entirely by the state budget, while other construction will be funded by private sector funds and investment,” Pandjaitan continued.

Previously, Pandjaitan had said that the United Arab Emirates (UAE) government had prepared $22.8 billion to invest in Indonesia through a sovereign wealth fund (SWF) together with Japanese conglomerate SoftBank and the United States International Development Finance Corporation.

The structure and finalization of the SWF will be held later this month in Tokyo, Japan, Pandjaitan said. The fund expects can begin around the middle of this year and is used for the construction of the new capital city. The finalization involves legal experts to ensure its legal basis and independent international auditors so as not to undermine the trust of fund owners, he adds.

“During the bilateral meeting the president talked about the sovereign wealth fund and the crown prince repeatedly said that Indonesia is a close friend of the UAE and that Indonesia is the country with the largest Muslim population in the world,” he said.

The minister revealed that the UAE would also invest in the construction of the new capital city in Kutai Kartanegara, East Kalimantan, through the sovereign wealth fund. Pandjaitan added that the crown prince expressed an interest in investing in development in Aceh.

“They really want to invest in property in Aceh. So next week we will speak with the Aceh governor and other officials there because there are several requirements for the UAE to invest,” he said.

Written by Lexy Nantu, Email: lexy@theinsiderstories.com