Indonesia is pressing ahead with plans to build a new capital as billions of dollars in private sector investment is seen as key to reviving an economy battered by the coronavirus pandemic, a senior minister said.

President Joko “Jokowi” Widodo announced on Tuesday that seven foreign companies had confirmed plans to relocate production facilities to Indonesia, mostly from China, an encouraging signal for the country’s investment climate amid the pandemic.

Indonesia's state-owned mining holding company will acquire a 20% stake in the local subsidiary of Brazilian mining giant Vale, operator of the world's largest nickel mine on the island of Sulawesi.

The Bank of Indonesia has announced a 25 basis point reduction in its main rate to 4.25%. It also revised down its gross domestic product growth forecasts from 2.3% prior to a range from 0.9% to 1.9% for this year. Indonesia therefore intensifies its efforts to support the economy and face the crisis.

The undersecretary Manlio Di Stefano had a meeting with Indonesia's deputy foreign minister Mahendra Siregar. The meeting made it possible to take stock of the excellent state of bilateral relations and revealed the common hope of further strengthening relations, especially in the defense, agriculture, environment and energy sectors.

Indonesia is in talks with the U.S. government over the possible relocation of American companies operating in China to the archipelago, as businesses and governments worldwide look at ways to diversify production in response to supply chain disruptions caused by the coronavirus.