Indonesian President Joko Widodo. (Source: AFP/VNA) Jakarta (VNA) - President Joko Widodo announced onAugust 26 that he had picked East Kalimantan on Borneo island asthe location for Indonesia's new capital.
The most ideal location for the new capital is partlyin North Penajam Paser regency and partly in Kutai Kartanegara regency, which are near Balikpapan, he said.
Widodo said moving the capital would cost 466 trillion rupiah (32.79billion USD), of which the state would fund 19 percent, with the rest frompublic-private partnerships and private investment.
On August 16, thePresident proposed to theIndonesian parliament to move the country’s administrative centre to Kalimantan.
Indonesia’s new capital would be designed as asustainable smart city, which has an efficient public transport network as wellas green electricity and water supply systems.
Jakarta is the largest city of Indonesia with a9.6 million population, but its urban area accommodates up to nearly 30 millionpeople. Traffic congestion is costing its economy 7.04 billion USD each year.It is also prone to flooding due to low-lying location.
The metropolitan region is sinking up to 18cmper year. Its road coverage is much lower than that of other big cities,creating a near-permanent traffic jam.-VNA
VNA
