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Capital relocation plan requires private sector input: Business advocates
Center of Reform on Economics (CORE) Indonesia executive director Mohammad Faisal said that detailed planning would minimize the inconveniences faced by businesses.
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A construction worker puts the finishing touches on an MRT station at the Hotel Indonesia traffic circle in Central Jakarta.
(The Jakarta Post/Seto Wardhana)
T
he relocation of the capital city from Jakarta should be carefully planned as it will have a major impact not only on the state budget but also on business activities, the government has been told.
Indonesian Chamber of Commerce and Industry (Kadin) vice chairwoman for international relations Shinta Kamdani said a thorough assessment should be undertaken by the government that must take into account inputs from businesses.
This assessment, she argued, was needed because the plan to relocate the capital would also separate the seat of government from the country’s major business center. “The government should undertake a thorough assessment that should also involve the private sector with regards to separating the center of government from the business center,” said Shinta, suggesting that the government should provide a detailed plan of its policy agenda.
Indonesian Employers Association (Apindo) chairman Hariyadi Sukamdani echoed Shinta’s comments, saying the government must present a detailed study of its plan to relocate the capital city, particularly concerning the location of the new capital as well as the present infrastructure.
Hariyadi, however, voiced concern over the project’s long-term continuity, saying that the plan should receive backing not only from the administration but also from the House of Representatives (DPR). Only with the House’s approval could the plan to move the capital be realized, he argued.
“We have to remember that developing [a new capital city] is a long-term plan,” said Hariyadi, voicing doubts over the project’s future given the five-year presidential term. “The current government may have a grand vision, but what about the next government?”
Hariyadi said the increased use of technology in the government’s public services would help minimize the private sector’s cost of compliance even if the capital was not moved.
