DIFC Enhances Financial Cooperation With Indonesia's Nusantara Capital Authority

Dubai International Financial Centre (DIFC) has entered into a Memorandum of Understanding (MoU) with Indonesia's Nusantara Capital Authority to boost international financial cooperation. Essa Kazim, Governor of DIFC, and M. Basuki Hadimuljono, Acting Chairman of Nusantara Capital City Authority, signed the agreement in Dubai.

The MoU aims to create a framework for collaboration that will advance mutual interests and the development of the Nusantara Financial Centre in Ibu Kota Nusantara (IKN). The agreement includes exchanging expertise in International Financial Centre operations, such as regulatory frameworks and business models, to enhance operational efficiency and innovation.

The signing was witnessed by several key figures, including Erick Thohir, Minister of State-Owned Enterprises; Dr. Agung Wicaksono, Deputy of Funding and Investment at Nusantara Capital Authority; Endra S. Atmawidjaja, Senior Advisor to the Indonesian Ministry of Public Works and Public Housing; Arif Amiri, CEO of DIFC Authority; and Salmaan Jaffery, Chief Business Development Officer at DIFC Authority.

The agreement also focuses on developing mechanisms that enable entities from DIFC and IKN to establish registered business operations in each other's jurisdictions. This aims to foster seamless business integration and participation in global exchanges. Additionally, there will be collaboration on trends, legislation, and regulations in international financial services to stay ahead of global developments.

"This MoU marks an important milestone for Indonesia in establishing Ibu Kota Nusantara as a leading international financial centre. Our collaboration with DIFC will play a crucial role in creating an attractive investment environment, promoting sustainable development, and contributing to the global financial landscape," Hadimuljono stated.

Significant Opportunities for Investment

The Nusantara Financial Centre is planned to be strategically located within the expansive Nusantara region. This area covers 252,000 hectares and presents significant opportunities for investment. The financial district itself will encompass approximately 260 hectares within a broader business and financial centre spanning 3,000 hectares.

Kazim remarked, "As the UAE and Indonesia collaborate and innovate to drive economic growth and social impact in both countries, DIFC as MEASA's global leading financial centre is perfectly positioned to facilitate significant opportunities by way of this strategic partnership. Through this agreement with Nusantara Capital Authority, we are forming a new framework to ultimately grow the two financial ecosystems as we come together to drive the future of finance."

Progressing Construction Milestones

Meanwhile, construction is progressing in the First Development Area, which is the core government zone. This area is slated for completion this year and will culminate on Indonesia's Independence Day on 17th August 2024 with essential infrastructure prepared for this momentous occasion.

The Indonesian Minister of State-Owned Enterprises and DIFC Authority's CEO emphasised the partnership's strategic importance. They highlighted its potential to stimulate economic growth and drive innovation through international collaboration.

This partnership between DIFC and Indonesia’s Nusantara Capital Authority represents a significant step towards enhancing international financial cooperation while fostering economic growth through strategic initiatives.

With inputs from WAM