TEMPO.CO, Jakarta - During a limited meeting today, April 29, in the Presidential Office, President Joko “Jokowi” Widodo has decided to move the capital to outside Java Island.
“President chooses the third alternative, which is relocating the capital to outside Java. This perhaps one of the important decisions taken today,” said National Development Planning Agency (Bappenas) head Bambang Brodjonegoro.
Bambang explained his agency proposed three options of location for the new capital to the president. First, in Jakarta with a special administrative district. Governmental offices will be centered on the State Palace complex, the National Monument (Monas), and its vicinity.
The disadvantages from the first option, he added, was that it might strengthen Jakarta as the center of business and government. “And it is feared that the impact of urbanization on economic growth will not be optimal.”
The second alternative is relocating the capital to an area adjacent to Jakarta. This was inspired by Malaysia that moved its state administration to Putrajaya. However, this means Jakarta and its vicinity will remain the center of the country's economy.
The third alternative opted by Jokowi is relocating the capital to outside Java. This plan is modeled after Brazil that moved its capital from Rio de Janeiro to Brasilia that was far in Amazon; and Australia with its capital, Canberra, between Sydney and Melbourne; and a few other countries.
As for the financing, the president ordered the Working Cabinet ministers to draft a scheme that would not burden the State Budget, but rather involve participation from a third party under the government’s control.
“We can synergize with state-owned enterprises (SOE) or private parties directly or offer the government-to-business cooperation (KPBU) scheme for the infrastructure, office buildings, or commercial facilities, as well as residences,” Bambang concluded.