TEMPO.CO, Jakarta - President Joko “Jokowi” Widodo has officially announced the planned relocation of the Indonesian capital city to Kalimantan during his speech at the MPR session today, August 16. According to him, the capital relocation to Borneo Island will boost new economic growth.

“And also boost equal and just economy outside Java Island,” said the President at the Parliament Complex, Jakarta, Friday, August 16.

He stated that the new capital city was not only a symbol of identity, but also a representation of the nation’s progress. The new capital will have a concept of modern, smart, and green city, by using new and renewable energies and independent of fossil energies.

The funding of the relocation will source from the State Budget (APBN) as low as possible. “We push the participation from privates, SOEs, and government-to-business partnership cooperation (KPBU),” he added.

Meanwhile, the state spending in 2020 will be focused on alleviating the economic gap among regions. Therefore, the government will continue to develop multiple economy zones outside Java.

“So far, economic activities are centered in Jakarta and Java Island, so Java Island is fully populated and this causes inequality with the islands outside of Java,” Jokowi said.

HENDARTYO HANGGI