President Jokowi has officially announced that North Penajam Paser and Kutai Kertanegara regencies in East Kalimantan will become Indonesia’s capital.
“East Kalimantan has a low risk of natural disasters, be it forest fire or earthquake, and the location is also strategic as it is in the center of Indonesia, and close to developed cities,” the President elaborated at the State Palace today, 26th August.
The planned relocation has been discussed ever since Indonesia’s first President, Soekarno, was in power. Jokowi also said that Indonesia has not yet designed its administrative hub.
“As for financing, it requires Rp466trillion. Some 19 percent of which will be from the state budget (APBN),” the president added.
During the press conference, Jokowi said that Jakarta has been overwhelmed as the centre of the country’s administration, services, trade, and finance. The city’s port and airport often experience severe congestion. Kalimantan on Borneo has been chosen to ease the burden of the overloaded island of Java.