Indonesia to seek funds from Saudi Arabia, UAE and crowdfunding after SoftBank's withdrawal

Last month, SoftBank Group withdrew from a US$34 billion project in Indonesia. After the withdrawal, Indonesia is looking to Saudi Arabia, the United Arab Emirates, crowdfunding for the capital city in Borneo, reported by South China Morning Post last week.

SoftBank's exit was revealed by Luhut Pandjaitan, the Coordinating Minister of Maritime and Investment Affairs. The reports by SCMP mentioned that he cited a "decline in the share price" and Saudi Arabia's withdrawal of funds from the company's venture capital arm Vision Fund 2 as reasons.

But on the contrary, the company's board director Ken Miyauchi in a statement said: "Return of investment, whether from timing or the amount of ROI itself, is the main reason why we were backing out from the project."

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The report mentioned that Luhut, who is the right hand of the country's President Joko Widodo, is putting in efforts to seek funds from Saudi Arabia and the United Arab Emirates.

"When I visited Saudi Arabia, Crown Prince Mohammad bin Salman asked to get into [the capital development project]. We are still discussing how big [Saudi Arabia’s] investments will be. We are continuing to have virtual meetings with his team," Luhut told reporters as quoted by SCMP.

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(With inputs from agencies)