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Jakarta Post

Govt considers swapping scheme for buildings as part of capital relocation plan

  • News Desk

    The Jakarta Post

Jakarta   /   Mon, May 13, 2019   /   11:14 am
Govt considers swapping scheme for buildings as part of capital relocation plan President Joko “Jokowi” Widodo (center), accompanied by a number of officials, studies a map while visiting Gunung Mas regency in Central Kalimantan on May 8. (Antara/Akbar Nugroho Gumay )

In trying to lower the cost of relocating Indonesia’s capital, the government has said it would be open to swapping ownership of buildings in Jakarta with suitable ones at the new location, which is still being considered.

Public Works and Housing Minister Basuki Hadimuljono recently emphasized that the state budget could not cover all of the relocation budget, which was projected to reach Rp 466 trillion (US$32.36 billion).

An official previously said the government could only cover half of the cost.

A number of alternative options are, therefore, being considered, including a building-swap scheme.

Basuki said he was confident that businesspeople would be interested in owning a government building in Jakarta because the city would still be the center of the country’s economy.

“As an example, this Public Works and Housing Ministry has to move [to the new capital]. We are offering a swap option for this building, which is still valuable because the country’s economic activities would remain here,” Basuki said in his office as quoted by on Sunday.

It was reportedly stated during a Cabinet meeting on April 29 that institutions to move to the new capital include ministry offices, the People’s Consultative Assembly, the House of Representatives, Regional Representatives Council, Attorney General’s Office (AGO), the Supreme Court, the Constitutional Court (MK), as well as the Indonesian Military (TNI) and National Police headquarters.

Some 1.5 million civil servants, police and military officials, as well as other state personnel, will also be relocated.

Meanwhile, institutions related to finance, trade, investment and industry, like Bank Indonesia (BI), the Financial Service Authority (OJK) and the Investment Coordination Board (BKPM), would remain in Jakarta.

But according to Basuki, the government is still studying the swap option, particularly from a legal aspect. He added that a study was also needed to prevent a loss of state assets during the swap.

Other important issues that were being discussed included the development of basic infrastructures, such as clean water, sanitation facilities, roads, housing and so on to support socio-economic factors, he said. (bbn)