Indonesia to allocate 2 billion USD to new capital city project

Indonesia’s Finance Minister Sri Mulyani Indrawati. (Photo: tempo.co)

Jakarta (VNA) – Indonesia will set aside between 27 trillion rupiah and 30 trillion rupiah (1.88-2 billion USD) next year for the development of the country's new capital city, Finance Minister Sri Mulyani Indrawati said.

Speaking at a press conference on April 14, the minister said the funds will be spent on basic infrastructure, offices, schools and medical facilities, and security-related spending in the new city.

Despite fiscal tightening, Indonesia will allocate between 367 trillion rupiah and 402 trillion rupiah for total nationwide infrastructure spending next year.

President Joko Widodo aims to move the capital city before the end of his tenure in 2024. Indonesia's parliament approved a bill to relocate the nation's capital from Jakarta to Kalimantan on Borneo last January, creating a legal basis to implement the project.

The new capital will be called "Nusantara", or archipelago in English, which was chosen by the president.

It will serve as the centre of government, while Jakarta, which is home to more than 10 million people, will remain the business and economic centre of Indonesia, Southeast Asia's biggest economy./.

VNA