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Jakarta Post

Asset optimization, alternative financing for new capital

  • Harizul Akbar
    Harizul Akbar

    Certified property valuer and real estate analyst

Jakarta   /   Tue, October 15, 2019   /  10:06 am
Asset optimization, alternative financing for new capital One of the biggest challenges in relocating the capital would be financing. The National Development Planning Agency (Bappenas) predicts that the relocation of the capital requires at least Rp 466 trillion (US$32.96 billion). (Antara/Akbar Nugroho Gumay)

President Joko “Jokowi” Widodo has announced that the location of the new national capital will be in some administrative areas of North Penajam Paser regency and Kutai Kartanegara regency, East Kalimantan province. In short, the plan to relocate the capital is motivated by two reasons: physical-empirical and political-economic. The physical-empirical reason signifies the increasingly poor carrying capacity of the environment, congestion, urban sprawl, water crisis and land conversion. While the economic and political reasons include symbols of national identity, reflection of diversity and equitable development. Jakarta has become the center of nearly everything. As the country’s trade center with a contribution of 20 percent to the national gross domestic product (GDP) of the trade sector, the financial services center with a contribution of 45 percent to the...

Disclaimer: The opinions expressed in this article are those of the author and do not reflect the official stance of The Jakarta Post.