The national development planning minister,  Suharso Monoarfa, announced the construction of the presidential palace in East Kalimantan start in this year and in the Independence Day ceremony on August 17, 2024, the new capital city in Penajam Paser Utara, East Kalimantan, has been established - Photo by Bappenas Office

JAKARTA (TheInsiderStories) – The national development planning minister,  Suharso Monoarfa, announced the construction of the presidential palace in East Kalimantan start in this year. He also targeting that in the Independence Day ceremony on August 17, 2024, the new capital city in Penajam Paser Utara, East Kalimantan, has been established.

The development costs for this initial phase of the The multibillion dollar projects have been included in the 2021 State Budget, he adds. In total, the building costs of the new capital city projects of Rp466.98 trillion (US$32.20 billion), comes from the state budget, private sector, and the Public Private Partnership.

To support the connectivity around the capital city, Monoarfa has discussed with the regional government to develop Aji Pangeran Tumenggung Airport Pranoto and Sepaku Semol Airport. The development is part an integration of three cities, Balikpapan, Samarinda, and Penajam Passer Utara. This airport will have an ultimate capacity up to 20 million passengers each year.

There are also dams at the Tengin River to supply of raw water for the capital city and the Kariangau Port at Balikpapan. Currently, there are five terminals with a total capacity of 2.1 million tons and 630,000 TEUs of containers each year. The development of the terminal will be in line with the construction of the new capital city and the integration of three cities to become an integrated industrial areas.

Preparation for the transfer of new capital city included in the National Medium-Term Development Plan for 2020 – 2024, which includes the construction of government administration facilities and to generate economic activities. Due to the pandemic, the government was postponed the new capital city project to 2021.

“We are still in the framework of preparation, and we are continuing the master plan and construction of basic infrastructure in Samarinda and Balikpapan,” he told the parliament on Sept. 8, 2020.

He asserted, the ministry still allocates the 2021 State Budget for the basic development in the new capital city, included the national development planning program of Rp1.7 trillion in this year. Earlier, President Joko Widodo has said the planned smart metropolis that supported the growth of innovation and green industries.

He added, the state budget would cover Rp89.4 trillion or 19.2 percent of the development costs and Rp253.4 trillion or 54.4 percent of the budget would be financed through the government cooperation with businesses and the remaining Rp123.2 trillion, 26.4 percent of the cost, would be gained through private financing.

He explained, the capital will be built on 180,000 hectares of land already owned by the government, thereby minimizing the cost of land acquisition. Earthquakes, flooding, and volcanic eruptions are less common in that area.

Balikpapan is home to oil refineries and a port, making it an economic center of Kalimantan. Samarinda is the capital of East Kalimantan Province. Compared with other parts of Kalimantan previously considered, much of the necessary infrastructure is already in place. Both cities have an international airport, and they could be connected to the rest of the island via highways and railways.

Widodo earlier said he wants the new capital to be green, smart city, meaning he wants it wired with the latest information and communications technology. The aim is also to keep the city compact, so it does not harm surrounding tropical rain forests.

US$1: Rp14,500

Written by Editorial Staff, Email: theinsiderstories@gmail.com