Construction of Indonesia’s New Capital to Begin in 2021

JAKARTA, KOMPAS.com – Construction of Indonesia’s new capital in East Kalimantan is slated to begin in 2021.

This is part of the government’s ongoing effort to build a physical structure in Indonesia’s new capital city situated in North Penajam Paser Regency.

Indonesian Minister of Public Works and Public Housing Basuki Hadimuljono said that the government aims to get the construction phase started next year.

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“We are still in the planning stage where the focus is on the design of the new capital city. We are also working on drafting laws and establishing a legal umbrella together with the People’s Representative Council of Indonesia (DPR RI),” said Basuki on June 24.

“We’re aiming that by next year, we’ll be able to enter the construction phase of the new capital city project,” added Basuki.

The government is teaming up with domestic and foreign investors for the project.

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“The Indonesian government cannot work alone and thus partnering with the private sector from other countries will be important,” said Basuki.

The scheme of the project seeks to be mutually beneficial for those involved.

The minister also shared that Indonesia’s new capital is projected to be a smart and eco-friendly city.

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Moreover, since there has yet to be a legal umbrella and regulations on the project, the Ministry of Public Works and Public Housing can only do so much in moving the project forward.

Indonesia’s Coordinating Minister of Economic Affairs Luhut Panjaitan said that the government remains focused on mitigating the coronavirus pandemic for now.

Luhut admitted that the progress of Indonesia’s new capital thus far is still minimal and that even President Jokowi has not conducted further evaluations.

Goodbye Jakarta

During his first term, President Jokowi made the official announcement of moving Indonesia’s capital city to East Kalimantan in August 2019.

Jokowi offered five reasons behind the groundbreaking plans.

1. Minimal risk of natural disasters
2. Strategic location
3. Close proximity to developed cities
4. Adequate infrastructure
5. Government-owned land of 180,000 hectares

Positioning Indonesia’s new capital in Kalimantan is part of Jokowi’s plans to accomplish more equitable growth.

Jakarta and the Java islands overly dominate the country in terms of population density and economic contribution.

Thus the need to position Indonesia’s new capital outside of Java, according to Jokowi. 

(Writer: Muhammad Idris | Editor: Muhammad Idris)

Source: https://money.kompas.com/read/2020/06/24/131728526/tahun-depan-pembangunan-konstruksi-ibu-kota-baru-dimulai