Indonesia plans to transfer its capital from Jakarta to Borneo

Posted on by Neeraj Jivnani

Indonesia will transfer the capital from the congested and gassed Jakarta to the province of East Kalimantan on the island of Borneo. Authorities made this decision after three years of careful study of this issue, said Indonesian President Joko Vidodo.

The new capital of Indonesia has no name yet. It is known that it will be located on a plot of 180 thousand hectares in a region with a well-developed infrastructure – near the cities of Balikpapan and Samarinda.

An important factor in choosing a site for the new capital was the risk assessment of various natural disasters. Indonesia is one of the most unsafe countries in terms of seismic activity. Studies have shown a minimal risk of floods, earthquakes, tsunamis, forest fires, volcanic eruptions, as well as landslides in the selected area, MarketWatch reports. Jakarta is also prone to frequent earthquakes and floods. In addition, the city is undergoing gradual subsidence of soil due to the uncontrolled withdrawal of groundwater.

It is planned to move the capital in 10 years. Financial costs are estimated at 466 trillion rupees ($ 32.5 billion). 19% of this amount will be allocated from the budget. The remaining amount will be raised through direct investment by state-owned companies and the private sector, the president of Indonesia said.

Widodo approved the general plan for the transfer of the capital in April this year. On Monday, he announced that his government was preparing a bill to be submitted to the country’s parliament.

Jakarta is not only a center of state power but also a financial, business and commercial center. The city has the country’s largest airport and seaport. 10 million people live in Jakarta, and taking into account the suburbs, the population is 30 million people. The city is located on the island of Java – it is the most populated region of the country. Currently, 54% of the 270 million people living in Java live in Java.

Earlier, the President of Indonesia has already stated that he would like to separate the center of state power from the business and economic center of the country. According to Vidodo, the load on the capital has become exorbitant.

Another serious problem in Jakarta is traffic jams, which cost the country’s economy $ 6.5 billion per year.

“We cannot allow a further increase in the pressure on Jakarta and Java in terms of population density growth,” said Vidodo. “This will lead to even more serious economic disparities between the inhabitants of Java and other regions.”

For comparison, in the province of East Kalimantan, where the Kutai National Park is located, only about 3.5 million people live.

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