TheJakartaPost
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Bappenas head Suharso Monoarfa confirmed with The Jakarta Post on Wednesday that the capital relocation plan had been suspended for the time being, since the pandemic had forced the government to shift its policies.
The central government is expediting the establishment of regulations and a master plan for the new capital, which will be built in North Penajam Paser and Kutai Kartanegara regencies, East Kalimantan.
East Kalimantan Governor Isran Noor has called on the central government to be more mindful of the lush forests covering parts of the province as Jakarta moves forward with its long-term plan to relocate the country's capital city to the region.
Indonesia’s new capital city will only contribute an additional 0.02 of a percentage point to the country’s economic growth, and the impact will also be short lived, according to Institute for Development of Economics and Finance (Indef) research.
