Gov’t Relocates Capital to East Kalimantan

President Joko “Jokowi” Widodo has officially announced East Kalimantan as location of Indonesia’s new capital.

North Penajam Paser and Kutai Kartanegara regencies in the province are the exact location of the new capital.

“The Government has conducted in-depth research for the past three years. (From) the result, the new capital will be built in the most ideal location, which is in North Penajam Paser and Kutai Kartanegara regencies in East Kalimantan,” President Jokowi said in a press conference at the State Palace, Jakarta, Monday (26/8).

East Kalimantan, the President said, has a minimum risk of natural disasters (e.g. floods, earthquakes, tsunamis, forest fires, volcano eruptions, and landslides) and is located at the center of Indonesia, adding that  the location has close proximity to developed cities such as Balikpapan and Samarinda which already have relatively complete infrastructure.

The Government also owns 180 thousand hectares of land in the location, he added.

The President added that development of the new capital is expected to cost up to Rp466 trillion, 19% of which will be sourced from the State Budget. In the meantime, the remaining budget will be obtained through government cooperation with business entity scheme, private direct investment, and state-owned enterprises.

Jakarta, the President added, will remain as a development priority, adding that the city will be developed as a business and financial city, trade and service hub on a regional and global scale.

“The Special Capital Region of Jakarta Provincial Government’s plan to conduct urban regeneration, which is budgeted at Rp571 trillion, will continue to be carried out and the discussion is already at the technical level and ready to be executed,” President Jokowi said.

Nevertheless, the President acknowledged that capital relocation requires approval from the People’s Representative Council (DPR) and said that the Government has already sent a letter to  Speaker of DPR along with research results of the new capital.

“Concerning the matter, the Government will immediately prepare a related bill to be submitted to the DPR,” the President said.

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