State capital relocation to cost over Rp1 trillion

Jakarta (ANTARA News) - The cost of relocating Indonesian state capital Jakarta to outside of Java has been estimated at Rp1 trillion, National Development Planning Board (Bappenas) Chief Bambang Brodjonegoro has said.

"We have already made the budget estimation to relocate the capital Jakarta at more than Rp1 trillion," Bambang said at the Bappenas office here, Thursday.

To relocate the state capital, he explained that the Bappenas would develop a scheme of financing by involving the private sector, so that it is not dependent on the state budget alone.

"In the discussion on the preparation of our studies, we have also been interacting with employers to see how much interest they will have if they are involved," Bambang mentioned.

The Bappenas itself has submitted a preliminary study related to the planned transfer of capital to President Joko Widodo, Wednesday.

"Yes, the results of the initial study have been reported to the President, so we will discuss it in more detail," he stated.

According to him, the initial assessment is still focused on the selection of the location of the capital that is conical to the three candidate locations of Central Kalimantan, West Kalimantan, and East Kalimantan.

The three candidate locations have their respective advantages and disadvantages, as described in the study.

"The indicator is about the area of available land, which would be free or would not have to be compensated for; the disaster dimension on how high the risk of disaster is; and the third is the availability of infrastructure. Although we will build a new city, it will not be more efficient if is too far from the required infrastructure," said Bambang.

After submitting a preliminary assessment of the removal of the capital, Bappenas itself is now ready to wait for further direction from the President while conducting more detailed reviews.

"Later, the president will decides what to do next, while we will continue to do more detailed study, including on the condition of the land, access to construction and other matters," Bambang remarked.

In addition to this, he stressed the governments commitment and political support was important, so the planned removal of the capital can be realized more quickly.

Source: ANTARA News

Related posts