Jakarta to remain economic hub after Indonesia moves capital city

Jakarta will remain Indonesia's capital until the president issues a decree officially naming Nusantara as the new capital city (Photo: EPA)

Hanoi (VNA) - Indonesia's parliament on March 28 designated a special status for Jakarta, keeping the metropolis as the country's economic epicentre, as the Southeast Asian country is planning to move the capital city to Borneo island.

Indonesia's Minister of Home Affairs Tito Karnavian said after deliberation in parliament that Jakarta should still be improved to compete with other "world-class cities" once the seat of government has been moved to Nusantara.

According to the minister, it still has to be sealed with a special status so that it can accelerate economic growth and to increase contribution to the country's GDP after it is no longer a capital.

Indonesia is planning to move its capital city away from congested and sinking Jakarta, to Nusantara, a 32 billion USD city, which is under construction in East Kalimantan province on Borneo island.

The city is a key project of outgoing President Joko Widodo, who pledged to redistribute wealth and development currently concentrated in Java, across the archipelago country. Under the current rules, Jakarta will remain the capital of Indonesia until the president issues a decree officially naming Nusantara as the new capital.

The government is expected to hold a ceremony to celebrate the country's Independence Day on August 17 in Nusantara and thousands of civil servants are expected to move there by the end of this year./.