In addition to the sale of assets, the government is also considering renting out state-owned office buildings in Jakarta to partly finance the development of the new capital, which will cost about Rp 466 trillion (US$32.72 billion).

“We could utilize state assets or sell them, but the government still needs to consider and decide which assets should be retained and which should be sold,” Finance Minister Sri Mulyani Indrawati said during a hearing with the House of Representatives special committee tasked with supervising the relocation of the capital in Jakarta on Sept. 25.

Sri Mulyani said funds allocated from the state budget would account for about 19 percent of the total funds needed for the development of the new city.

Sri Mulyani said state assets could be leased or managed in partnership with private companies so that the government would receive non-tax revenue that could be used to partly finance the construction of the new capital city.

“We will grant [some] state assets to local administrations and we could [also] swap our assets with the private sector or local administrations,” she said, adding that the government would also use ministries' and institutions’ budgets as well as special allocation funds (DAK) from the state budget to pay for the new capital.

She added that the state budget would be used to pay for state installations, such as a presidential palace and military headquarters. “We will need further planning to see the fiscal impact and the trade-off in other development priorities on future state budgets.”

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