Indonesia to relocate its capital to Kalimantan by 2024

Indonesian President Joko Widodo reaffirmed on Thursday that the country's capital would be moved to Borneo island from sinking and traffic-clogged Jakarta. All preparations, including the legal framework, are expected to be completed by next year, so construction can start by 2021.

 

 

"Our country's capital will move to Kalimantan Island. The location can be in Central Kalimantan, East Kalimantan or South Kalimantan," Joko said on Twitter, using the Indonesian name for Borneo. "All aspects are being studied thoroughly so that the decision will be in line with our national vision for the next 10, 50, 100 years," he said.

The city of Palangkaraya and an area near oil-rich Balikpapan have been considered as among the likely site for the new capital. Experts said unlike other parts of Indonesia, most of Borneo is not prone to earthquakes and volcanic eruptions.

The government wants to start moving to a new capital by 2024, at the end of Joko's second five-year term in office. National Development Planning Minister Bambang Brodjonegoro said earlier this year that such a move could cost up to $33 billion. Funding will involve allowing developers to manage government-owned property in Jakarta in return for helping build the future new city, he said.

The government has cited traffic congestion, frequent flooding and faster land subsidence as the main considerations for the move. About 40% of Jakarta, a metropolis of 10 million people, is now below sea level and keeps sinking. The greater Jakarta area, including satellite cities, is home to 30 million people.

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