TEMPO.CO, Jakarta - President Joko “Jokowi” Widodo has announced the new capital city will be built in the regencies of North Penajam Paser and Kutai Kartanegara, East Kalimantan. He said the relocation would cost up to Rp466 trillion.
“As for financing, it requires Rp466 trillion. Some 19 percent of which will be from the State Budget (APBN),” said the President during a press conference today, August 26, in State Palace.
He reiterated that the construction of the new capital would use the scheme of assets management in the new capital and Jakarta. “The rest will be through government-to-business partnership cooperation (KPBU) and direct investment from private companies and SOEs,” he said.
The two regencies have been chosen after a long and thorough study by the National Development Planning Agency (Bappenas), and the plan has been canvassed since the era of Indonesian first President Ir. Soekarno.
“As a big nation, Indonesia had never decided and designed the whereabouts of its administrative hub yet,” said the seventh President.
He further mentioned several reasons for the selected location, East Kalimantan. The province is set as it has a small risk of natural disasters, it is located in the center of the country, and to developed cities, viz. Balikpapan and Samarinda.
Additionally, the region has relatively complete infrastructure compared to other potential regions. The government also controls around 180,000 hectares in the province.
Accompanying President Jokowi during the press conference were Vice President Jusuf Kalla, Bappenas head Bambang Brodjonegoro, Agrarian and Spatial Planning Minister Sofyan Djalil, Public Works and Public Housing Minister Basuki Hadimuljono, Jakarta Governor Anies Baswedan, and East Kalimantan Governor Isran Noor.