Widodo unveils site of new capital in East Kalimantan
People's Daily app

JAKARTA (People's Daily) - Indonesian President Joko "Jokowi" Widodo said two regencies in East Kalimantan are to be the site of the country's new capital city. 

He made the announcement at a press conference at the State Palace in Jakarta on Monday.

Widodo said that the relocation of the new capital city is intended to help ensure the equal spread of development across the country and to take some of the burden off Jakarta.


Indonesian President Joko Widodo smiles at reporters as he arrives before delivering a speech ahead of Independence Day, at the parliament building in Jakarta, Indonesia, August 16, 2019. (File photo)

“The new capital will be built in part of the North Penajam Paser regency and part of the Kutai Kertanegara regency in East Kalimantan,” he said, adding that he had sent a letter to House of Representatives Speaker Bambang Soesatyo informing him of the decision.

According to the Jakarta Post, the entire capital relocation process is expected to cost 466 trillion rupiah (32.7 billion U.S. dollars).

“In 2020, we aim to finish the master plan, urban design, building design and the legal basis for the move,” National Development Planning Agency head Bambang Brodjonegoro said at the press conference. “Toward the end of 2020, we will start construction with the hope the center of government will be moved by 2024 at the latest.”

The plan to move the capital from the island of Java was first announced by Bambang in April. The new capital is to act as the center of government, while Jakarta will remain the country’s business and financial center.