Monday, 16 September 2019

REI Ready to Help Fund Indonesia's Capital City Move

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Markus Wisnu Murti

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  • President Joko Widodo visits the forest area of Gunung Mas, Central Kalimantan, Wednesday, May 8, 2019. ANTARA/Akbar Nugroho Gumay

    President Joko Widodo visits the forest area of Gunung Mas, Central Kalimantan, Wednesday, May 8, 2019. ANTARA/Akbar Nugroho Gumay

    TEMPO.CO, Jakarta - Real Estate Indonesia (REI) has announced it is set to spend more than Rp1,000 trillion to support the government’s plan to relocate the nation’s capital city from Jakarta to Kalimantan. They say this will help the government save costs, thus it will only need to prepare the necessary infrastructure.

    “That will be on a ten-year tenure for the construction of office buildings, schools, hospitals, up to the hundreds of apartment towers, which will all be done gradually,” said DPP REI secretary-general Paulus Totok Lusida at the REI office in Jakarta on Friday.

    Paulus said the budget would be divided among multiple developers, and not limited to major developers. 

    ReadBappenas: Capital City Move with Economic Disparity in Mind

    The REI said it had prepared a concept to support the planned relocation of the capital city by, among others, planning to build houses for government employees.

    Head of the National Development Planning Agency (Bappenas) Bambang Brodjonegoro said the government was currently working in tandem with businesses under the government-to-business (KPBU) scheme to help fund the move.

    “It has been discussed with the REI at least,” said Bambang in a discussion at the Bappenas headquarters on Wednesday, July 10.

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