Indonesian government is targeting a new capital bill to be enacted in June 2019, said the government official today (01/15) - Photo by TheInsiderStories

JAKARTA (TheInsiderStories) – Indonesian government is targeting a new capital bill to be enacted in June 2019, said the government official today (01/15). Its also expected that the master plan of capital development to be completed at the same time or no later than the beginning of semester II.

Previously, the country arranged for the existence of a new capital in Law Number 29 Year 2007 concerning of the Government of the Province of the Special Capital Region of Jakarta as the Capital of the Unitary State of the Republic of Indonesia.

“After that, a detailed plan of the project will be made. Next year we’ve started the construction of the building with state budget and other clusters will begin to be offered to investors,” said the minister of national development planning, Suharso Monoarfa, after a limited meeting at president office in Jakarta.

Furthermore, he said, the government would form an authority body for the new capital city, who have ministerial level authority. The government will issue a presidential regulation to form the institution, he adds.

Monoarfa stated, the authority would have duties, ranging from preparing, building to processing the transfer of the capital. This institution is also given authority over the management of land, land, and so that the development process can be centralized well administratively.

Based on government data, the construction of the new capital is estimated to cost Rp488 trillion (US$34.86 billion), in which the government portion for project funding is prepared Rp100 trillion from the State Budget. He asserted, the rest is expected from the private sector.

“The government portion is to construct the palace, state institutions, housing for members of parliament, government offices and others,” said Monoarfa.

According to him, currently there are several foreign companies that have expressed their interest to joint the project such as from United Arab Emirates, United States, Britain, Japan and Germany. In a meeting with President Joko Widodo, Masayoshi Son from a Japane’ Softbank expressed his desire to invest in an outonomous vehicle.

Apart from investors, funding from the capital market is also become a consideration, said the minister. In addition, the soverign wealth fund (SWF) to be formed by the government is also expected to help the financing of the project

“The SWF will be formed to finance infrastructure development throughout Indonesia, including the capital city. Later pension funds, insurance and other financial institutions will be the initial financiers to be formed by the government,” he added.

US$1: Rp14,000

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