Indonesia' government has estimated Rp571 trillion (US$40.21 billion) to build Jakarta as an urban city that frees from all kinds of burdens, from traffic jams to the clean water crisis - Photo: TheInsiderStories.

JAKARTA (TheInsiderStories) – The Jakarta provincial government will issue regional bonds to meet the investment needs of Rp571 trillion (US$40.21 billion) for 10 years until 2030. The bonds will be used as funds to release the burden of Jakarta as the country’s capital. The funds will be borne by the state budget, government and business entities cooperation, as well as purely private or state-owned investment.

“So, since last February we have discussed at the limited meeting level that the development of Jakarta must be accelerated. We estimated Rp571 trillion for Jakarta’s urban city. Which of one is by issuing bonds, the entry into the regional expenditure budget,” said Jakarta Governor Anies Baswedan at the Presidential Palace in Jakarta, Monday (08/26).

The acceleration of development is carried out even though Jakarta no longer as the national capital. Baswedan revealed Jakarta in the future will continue to be a center for business, finance, trade, and services.

“So we are targeting until 2030. From where the funding comes from the private sector, state budget, and cooperation with business entities. That has been discussed and then reached the technical level, therefore for Jakarta the acceleration of development continues with or without the central government,” he said.

The governor went on by says that the investment would later be used for housing construction, mass transportation systems such as railways, light rapid transit system, mass rapid transit, to the bus network.

Then, the great investment will also be used for utility systems such as water drainage systems, to clean water systems. That was the priority at the beginning. So we speeded up within 10 years, he adds.

President Joko Widodo, hours earlier, announced Indonesian capital city move to Penajam, Nort Passer district and Kutai Kartanegara district in East Kalimantan. He delivered the statement accompany by his ministers and Governor of East Kalimantan Isran Noor 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 chooses the two district cause no earthquake vulnerability, in the middle of Indonesia, close to the development city Balikpapan and Samarinda, the infrastructure is ready, and in having land 180,000 hectares owned by the 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. Of the total, 19 percent of the financing comes from State Budget while the rest from asset management scheme, private direct investment, and state own enterprises.

To realize the planned, he added, the government prepared two bills concerning on new capital city and the new Jakarta position. He expects 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 parliament,” 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 build the government building and other supporting 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.


Written by Lexy Nantu, Email: