Gov’t to Establish New Capital Authority

Minister of National Development Planning/Head of the National Development Planning Agency (Bappenas) Suharso Monoarfa on his press statement, at the Presidential Office, Jakarta, Monday (16/12). (Photo by: Rahmat/PR).

In a bid to smoothen the process of capital relocation, the Government has decided to establish a New National Capital City Development Authority at cabinet-level position.

“We will immediately issue the Presidential Regulation (on the authority),” Minister of National Development Planning/Head of the National Development Planning Agency (Bappenas) Suharso Monoarfa told the reporters after attending the Limited Cabinet Meeting on the New National Capital City Readiness in the State Palace, Jakarta, Monday (16/12).

According to Suharso, the authority is tasked to manage preparation, construction, and finalization of capital relocation, adding that the authority is also responsible for dealing with matters related to authority over land and centralizing the development administratively.

The new capital, Suharso continued, will be an autonomous region. However, there will be 56,000 of ​​256,000 hectares of land that is not included in the region, he said.

“The region will be managed by a city manager,” he said, adding that the Government is open to use other sources of funding, including from foreign investors.

The groundbreaking of the new capital construction is scheduled in 2021.

“Still, basic infrastructure including drainage and national roads will be constructed in the first half of next year,” Suharso added.

President Joko “Jokowi” Widodo in August this year announced that two regencies in East Kalimantan are to be the site of Indonesia’s new capital city. The new capital will be built in part of North Penajam Paser regency and part of Kutai Kertanegara regency in East Kalimantan province. (HIM/RAH/ES)

Translated by: Galuh Wicaksono
Reviewed by: Muhammad Ersan Pamungkas