Indonesian capital 
city movement





What is happening in Indonesia?

Indonesia’s president, Joko Widodo has announced the national capital will move from Jakarta, on the island of Java, to the province of East Kalimantan, on Borneo.
Widodo told a press conference in Jakarta on Monday: “The government has conducted in-depth studies in the past three years and as a result of those studies the new capital will be built in part of North Penajam Paser regency and part of Kutai Kertanegara regency in East Kalimantan.”
This is a plan that has been suggested by various Indonesian presidents over decades, but it looks like the move will finally, actually happen. Widodo said the government will prepare a bill to be considered by the House of Representatives. If approved, construction could start next year.
Where will the new capital be?The move would see the government’s administrative functions moved from Jakarta to a yet-to-be-built city in Kalimantan, more than 1,000km away. Kalimantan is the Indonesian portion of the island of Borneo, which is also shared with Malaysia and Brunei. However, Jakarta will continue to be the nation’s commercial and financial centre, and it is believed that the majority of its nearly 10m residents would stay in Jakarta.Widodo said moving the capital would cost 466 trillion rupiah ($32.7bn), of which the state would fund 19%, with the rest from public-private partnerships and private investment. The price tag includes new government offices and homes for about 1.5 million civil servants.
When will the move happen?If parliament approves the bill, construction on the new capital would begin next year on a plot of 40,000 hectares. The government expects to start moving some of its bureaucrats by around 2024.
Why is it moving the capital?Widodo says that the relocation is about addressing inequality and relieving some of the burden on Jakarta, and the island of Java. Java is home to 60% of the country’s population and more than half of its economic activity. Kalimantan is almost four times bigger, but accounts for less than a tenth of the gross domestic production.

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