Jakarta – Indonesia’s Ministry of State-Owned Enterprises (SOEs) is actively pursuing international investors to enhance the value of SOE-owned building assets surrounding the iconic National Monument (Monas) in Jakarta.

According to SOEs Minister Erick Thohir, there are currently 13 assets under SOEs’ ownership in the vicinity of Monas, including properties owned by state oil and gas giant Pertamina. With the impending government relocation to the new capital city, Nusantara, in East Kalimantan, these properties risk being overlooked.

Erick emphasized the importance of leveraging these assets to their fullest potential, stating that it would be a missed opportunity not to capitalize on them. To this end, the ministry has initiated a roadshow targeting potential property companies to explore collaborative ventures.

Highlighting the urgency of value creation for these assets, especially in light of the impending governmental shift to Nusantara, Erick pointed to the successful model implemented in the Health Special Economic Zone (SEZ) in Sanur, Denpasar, Bali. Following the initiation of integrated tourism ecosystem development in December 2021, the SEZ attracted an initial investment of Rp10.3 trillion (approximately US$634.35 million) and generated employment opportunities for 43,000 individuals.

Erick stressed the need for similar initiatives to unlock the latent value of other SOE assets, including those surrounding Monas. It is envisaged that these assets will undergo development with support from the Mutual Property Fund.

“We must foster new value creation by revitalizing and upgrading SOE assets that have not been fully optimized, mirroring our success in Sanur,” remarked Erick.

In pursuit of this objective, both Erick and his deputy, Kartika Wirjoatmodjo, have embarked on international outreach efforts to court potential investors. Erick is slated to visit Qatar for business exploration, while Kartika will engage with European counterparts to explore collaborative opportunities.

As Indonesia positions itself as an attractive investment destination, the revitalization of SOE assets presents a compelling opportunity for international investors to participate in the country’s economic transformation journey.