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Jokowi picks East Kalimantan to host new capital to relieve Jakarta’s burden

The new capital will sit on an 180,000 hectare area, nearly three times the size of Jakarta, with the entire capital relocation process expected to cost Rp 466 trillion (US$32.7 billion), the President said.

Marchio Irfan Gorbiano, N. Adri, and Karina M. Tehusijarana (The Jakarta Post)
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Jakarta/Balikpapan
Tue, August 27, 2019

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Jokowi picks East Kalimantan to host new capital to relieve Jakarta’s burden President Joko "Joko" Widodo (center), accompanied by Vice President Jusuf Kalla (second right) and several ministers, announces that the new capital city will be built in two regencies in East Kalimantan during a press conference at the State Palace on Monday, Aug. 26. (JP/Seto Wardhana)

P

o:p>President Joko “Jokowi” Widodo announced on Monday that Indonesia’s new capital city will be located in two regencies in East Kalimantan, with the relocation intended to help ensure the equal spread of development across the country and to take some of the burden off Jakarta, which will remain the country’s economic center.

The location was chosen based on thorough studies the government had conducted over the past three years, Jokowi said.

"As a result of those studies, the new capital will be built in part of North Penajam Paser regency and part of Kutai Kertanegara regency in East Kalimantan," the President said at a press conference at the State Palace in Central Jakarta on Monday, adding that he had sent a letter to House of Representatives Speaker Bambang Soesatyo informing him of the decision.

The new capital will sit on an 180,000 hectare area, nearly three times the size of Jakarta, with the entire capital relocation process expected to cost Rp 466 trillion (US$32.7 billion), the President said.

National Development Planning Board (Bappenas) head Bambang Brodjonegoro said the government would soon prepare a draft bill concerning the relocation and aimed to finish the planning phase by the end of 2020.

“In 2020, we aim to finish the masterplan, urban design, building design and the legal basis for the move,” he said at the press conference. “Toward the end of 2020 we will start construction with the hope the center of government will be moved by 2024 at the latest.”

Public Works and Housing Minister Basuki Hadimuljono said the construction of infrastructure for the new capital would be completed in three phases.

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