Indonesia is shifting its capital from the congested Jakarta to an eastern Borneo island, President Joko Widodo has announced. The location of the new capital is in the centre of the southeast Asian archipelago, near the cities of Balikpapan and Samarinda.
The bill proposing the move will be drafted and sent to the parliament for approval by the Widodo government. The estimated cost of the project is expected to be around 466 trillion Indonesian rupiah (USD 33 billion).
The government owns around 445,000 acres of land in the province of east Kalimantan, which, Widodo added, was at minimal risk of natural disasters. Jakarta is afflicted by frequent earthquakes and floods.
“As a large nation that has been independent for 74 years, Indonesia has never chosen its own capital,” Widodo said. “The burden Jakarta is holding right now is too heavy as the centre of governance, business, finance, trade and services.”
Jakarta was first established by Dutch colonists around 500 years ago. It is one of the fastest-sinking cities in the world, according to reports, due to excessive groundwater extraction. Environmental experts have warned that one-third of Jakarta could be submerged by 2050.
Jakarta, which accommodates more than 10 million people, is weighed down by poor urban planning, congestion, pollution and massive traffic jams.
(with inputs from agencies)
