Govt Plans to Move Capital City Out of Java
Date 29 April 2019
Minister of National Development Planning (PPN)/Head of National Development Planning Agency (Bappenas) Bambang Brodjonegoro, at a Limited Cabinet Meeting at the Presidential Office, Jakarta, on Monday (29/4), presented three alternatives to move the capital city out of Jakarta.
“First, several ministries/institutions remain in Jakarta, around the Presidential Palace and Monas (the National Monument),” Bambang said after attending the Limited Cabinet Meeting.
The Minister added that the entire Government’s area will be centered in order to make coordination more effective and efficient.
He went on to say that as the second alternative, the Central Government would be moved away from Jakarta, within a radius of 50-70 km from Jakarta. He then pointed out Putra Jaya in Malaysia as an example.
According to him, the population of Java Island has reached 140-150 million people. The economic growth they make for the country has soared over 58% despite limited capacity, not to mention a number of agriculture productive lands that turned into housing and property.
If the Government moves the Capital city within Java Island, it would not reduce the Island’s burden, and not making our national development more Indonesia-centric, the Minister said.
Bambang further explained that the third alternative is to move the capital out of Java, to the Eastern part of Indonesia. Moving cities from one region to another is the same method that Brazil, Korea and also Kazakhstan used.
On that occasion, President Joko “Jokowi” Widodo has chosen the third alternative, namely to move the capital out of Java. “This is one of the important decisions that the Government has made. The Limited Cabinet Meeting will continue to discuss the details, including the design and the master plan of the city,” the Minister said.
He added that according to the President, the new capital city requires a large amount of money and Minister of Finance has confirmed that the costs are still within reasonable limits because the Government can work together with SOEs, private sectors and business entities and establishes cooperation under Public-Private Partnership scheme.
“The President’s direction is to create a financing scheme that will not burden the State Budget but to involve as much participation as possible from third parties while still maintaining the Governments control, “Bambang said. (FID / JAY / ES)
Translated by: Syarifah Aisyah
Edited by: Ridwan Ibadurrohman/Mia Medyana