President Joko 'Jokowi' Widodo leads a cabinet meeting in Jakarta on Tuesday to discuss the relocation of Indonesia's capital to Kalimantan. (Antara Photo/Akbar Nugroho Gumay)

Indonesia Wants to Relocate Its Capital to Kalimantan by 2024


AUGUST 06, 2019

Jakarta. Indonesia will move its capital from Jakarta to Kalimantan by 2024 at the earliest, with President Joko "Jokowi" Widodo expected to announce the final choice of location later this month after having considered the three options he was given on Tuesday.

The president said the three options are in the provinces of Central Kalimantan, East Kalimantan and South Kalimantan.

"Whether it be Central, East, or South Kalimantan, it will be decided soon after a presentation of the details [of the viability studies].These are related to disaster risks, environmental capacity … economy, demography, sociopolitical conditions, security and all aspects that must be considered in detail, so the decision we take will be correct for our future vision," Jokowi said in his opening remarks during a cabinet meeting on Tuesday.

He called on the government team led by the National Development Planning Agency (Bappenas) to also study other countries' experiences in relocating their capitals to learn what pitfalls to avoid.

The president requested the team to brief him about funding for the multi-year project, which will come from the state budget and other sources.

He said the government had to put a legal framework in place for the plan and that this would be discussed with the House of Representatives.

"My decision [on the new capital] will not be in my capacity as the head of government but as the leader of the state," Jokowi said.

National Development Planning Minister Bambang Brodjonegoro said after the cabinet meeting that in addition to enough vacant land, other matters to be considered included forest fires and the availability of water.

The minister said the government would establish an agency to oversee the relocation process. He added that the president also wants the new capital to meet international standards, so it can become a reference point for other cities in Indonesia.

The project may require about Rp 93 trillion ($6.5 billion) from the state budget, but Bambang said the government expects the private sector to contribute to the development of the new capital.

All preparations, including the legal framework, are expected to be completed by next year, so construction can start by 2021.

"We hope to execute the first phase of the capital relocation process by 2024," Bambang said.