US consulting firm to assist Indonesia’s capital relocation hinh anh 1Illustrative image (Source: internet)

Jakarta (VNA) - The Indonesian government has employed US consultants McKinsey & Company to help evaluate its plan to build a new capital city in East Kalimantan, a high-ranking official stated on October 21.

In a statement, Minister of National Development Planning Bambang Brodjonegoro said McKinsey & Company will begin working with the ministry in 2020.

He revealed that the firm has agreed to work with local experts as well as state- and city-owned companies during the project.  

The consulting firm will arrange plans and procedures to relocate the capital city from congested, flood-prone Jakarta to the districts of Kutai Kertanegara and Penajam Paser Utara in East Kalimantan.

It will also be responsible for conducting a feasibility study in the two districts to make projections on population, financial risks, and other socio-economic aspects affected by the establishment of the new capital city.

Brodjonegoro added that his ministry had established a strategic coordination team comprising nine representatives of related ministries and agencies to monitor the relocation project.

In 2020, the ministry will establish agencies and regulations to support the new capital city's master plan, followed by groundbreaking and the completion of a detailed engineering design for the new capital city in 2021.

Indonesia’s capital relocation plan is expected to cost 466 trillion rupiah (32.79 billion USD)./.