INCHEON, REPUBLIC OF KOREA (5 May 2023) — The Asian Development Bank (ADB) and Nusantara National Capital Authority (NNCA) have concluded a memorandum of understanding (MOU) that paves the way for collaboration on the planning and development of Nusantara as a carbon-neutral forest city.
The agreement was signed today on the sidelines of ADB’s 56th Annual Meeting between NNCA Chairman Bambang Susantono and ADB Vice-President for East Asia, Southeast Asia, and the Pacific Ahmed M. Saeed.
Under the MOU, ADB and the Government of Indonesia have committed to collaborate on ensuring the planned new capital city of Nusantara is well-designed with a reduced environmental impact and a target to be net-zero by 2045. The MOU further confirms joint efforts by ADB and the Government of Indonesia to mobilize financing from potential climate financing facilities and public–private partnerships to drive Nusantara's inclusive and sustainable development.
“Nusantara presents a unique opportunity to build on international best practices in the planning, development, and financing of a city,” said Mr. Saeed. “ADB is pleased to support the NNCA in developing an effective plan to realize its vision for a smart, carbon-neutral forest city.”
“Nusantara continues to strengthen its pathway to becoming the world’s first sustainable forest capital, as well as Indonesia’s first carbon-neutral city by 2045,” said Mr. Susantono. “Partnering with international institutions such as ADB helps Nusantara contribute to global agendas of addressing climate change, enhancing biodiversity, and meeting the Sustainable Development Goals.”
The NNCA was established in March 2022 and is a ministerial-level agency that reports directly to the Indonesian President. The authority is responsible for planning and constructing the new capital and for overseeing the government’s transition to the new city and eventually becoming its manager.
ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region.