TheJakartaPost
Please Update your browser
Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.
Popular Reads
Top Results
No results found. Please check your search term and try again
Can't find what you're looking for?
View all search results
Popular Reads
Top Results
No results found. Please check your search term and try again
Can't find what you're looking for?
View all search resultsNew capital city: More important than ever to boost investment
The construction of the capital city can be a tool for the government to stimulate the economy through its spending and private investment.
Change text size
Gift Premium Articles
to Anyone
Share the best of The Jakarta Post with friends, family, or colleagues. As a subscriber, you can gift 3 to 5 articles each month that anyone can read—no subscription needed!
T
he government’s decision to continue development of the new capital city in East Kalimantan this year despite ongoing coronavirus pandemic is a step in the right direction given a dire need to stimulate the cooling economy and Indonesia’s accelerated digitalization.
The COVID-19 pandemic quite rightly absorbed all the government’s attention and resources last year in efforts to contain the health crisis and rescue the economy, pushing the administration to delay construction of many infrastructure projects, including that of the new capital. As the national vaccination program rolls out, hope of controlling the pandemic emerges along with the government’s aim to kick start the new capital city development in 2021.
The House of Representatives has shown its support as it includes the government-initiated capital city bill in the 2021 National Legislation Program (Prolegnas) along with 32 other bills.
The National Development Planning Agency (Bappenas) has also stressed its readiness to commence the construction as soon as President Joko “Jokowi” Widodo instructs it to do so because the former has completed the masterplan as well as the detailed plan.
The plan to move the capital city is expected to reduce congestion, pollution and health risks and help alleviate water cycle management in Jakarta while at the same time develop a sustainable and green new city, create an inclusive society and improve efficiency and effectiveness of the government. This is a chance for the government to develop a truly smart and green city from the ground up.
Moreover, the increased global focus on sustainability and green economic recovery makes it even more important for Indonesia to have its own model to follow. The World Bank in its Global Economic Prospects report published earlier this month urges countries to stimulate green recovery from the pandemic-induced economic downturn as the escalating climate emergency looms.
Investing in green infrastructure projects, phasing out fossil fuel subsidies, and offering incentives for environmentally sustainable technologies can buttress long-term growth, lower carbon output, create jobs and help adapt to the effects of climate change, World Bank Group President David Malpass wrote in the report.
