President Joko Widodo announced Indonesian capital city move to Penajam, Nort Passer district and Kutai Kartanegara district in East Kalimantan - Photo by TheInsiderStories

JAKARTA (TheInsiderStories) – President Joko Widodo announced Indonesian capital city move to Penajam, Nort Passer district and Kutai Kartanegara district in East Kalimantan. He delivered the statement today accompany by Vice President Jusuf Kalla, the ministers and Governor of East Kalimantan Isran Noor today (08/26) at the State Palace.

“The government has conducted a study and presented a new ideal capital, which is part of the Penajam, North Passer and Kutai Kertanegara districts in East Kalimantan,” he told reporters.

The reason, he choose the two district cause no earthquake vulnerability, in the middle of Indonesia, close to the development city Balikpapan and Samarinda, the infrastructure are ready, and in have land 180,000 hectares own by government. Part of the land is Soeharto Hill and the conservation forest.

Other reasoned, cause Jakarta’ burden is already too heavy as the center of government activity. The city has become the capital city, trade, finance, and services center.

Secondly, the burden of Java Island is getting heavier with a population of 154 million or 54 percent of the total population of Indonesia and 58 percent of the total GDP of Indonesia.

Talking about funding, Widodo explained, the projects need funds Rp466 trillion (US$32.82 billion). Of the total, 19 percent of the financing come from State Budget while the rest from asset management scheme, private direct investment and state own enterprises.

While, Jakarta itself stayed as center of finance, services, trade services. He continued, the urban city development will be continued with a fund of Rp571 trillion will continue to run.

To realize the planned, he added, the government prepared two bills concerning on new capital city and the new Jakarta position. He expect the draft will send to the parliament next year.

“This morning I had sent a letter to the Indonesian Parliament on the new capital city planned and Jakarta new position. Soon the government will convey its planned law to the DPR,” said Widodo.

Minister of National Development Planning, Bambang Brodjonegoro revealed, 2020 is the preparatory phase to form the master plan, building design, bill, land preparation. The construction of projects is expecting start at the end of 2020 and the removal process is no later than 2024.

Then, Public Works and Public Housing minister Basuki Hadimuljono said, the projects will divide into three clusters. First, develop basic road and dam (2019) then mid-2020 parallel design and construction stages. And start to buidl the government building and other supported infrastructure.

“The construction will take about  three to four years so that 2023-2024 there will be a movement in that direction,” said the minister.

At the same place, East Kalimantan Governor Irsan Noor stated, immediately, he will coordinate the planned with the mayors of Balikpapan and Samarinda and the District Heads of Penajam and Kutai Kertanegara.

US$1: Rp14,200

by Linda Silaen, Email: linda.silaen@theinsiderstories.com