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Indonesia will move its capital at an estimated cost of $32 billion and begin implementation as soon as 2024

author:Jimu News

Jimu news reporter Sun Zhe

Comprehensive Reuters, The Washington Post and other foreign media reported that on January 18, local time, the Indonesian Parliament passed a bill to move the country's capital from Jakarta to East Kalimantan Province on the island of Borneo. Because it is not easy to move the capital, and it costs a lot of money, some media analysts pointed out that it is expected to start relocating as soon as 2024.

The construction of the new capital is planned to reach up to $32 billion

Indonesia's new capital will be named "Nusantara" ("Nusantara"), a word that means "archipelago" in Javanese. According to Hong Kong's Economic Daily, the new capital Nusantara ("Nusantara") is about 2,000 kilometers northeast of Jakarta.

Reuters reported that after the Indonesian parliament approved the capital relocation bill, Indonesia's national development planning minister Soharso said that the new capital will have core functions, become a symbol of the country, and also become a new economic center.

Indonesia will move its capital at an estimated cost of $32 billion and begin implementation as soon as 2024

On August 17, 2021, many places in Indonesia held activities to commemorate the 76th anniversary of independence. (Source: Reuters)

The relocation bill also provides a legal framework for plans to build Indonesia's new capital, detailing how the project will be funded and managed. CNN reported that it is expected to cost $32 billion (about 203.3 billion yuan) to relocate.

According to the Asian News Network, Indonesia's finance minister said that the relocation of the capital will be carried out in stages. The first phase, from 2022 to 2024, will focus on infrastructure including roads and ports, and the final phase will be completed by 2045.

In this regard, some media analysis pointed out that because it is not easy to move the capital, it is affected by the epidemic, coupled with a huge budget, it is expected to start relocating as soon as 2024.

Moving the capital is not a whim

Indonesians are no strangers to the topic of moving the capital. According to Xinhua News Agency, as early as 1957, Indonesia's founding president Sukarno proposed to move the capital. In the decades that followed, the topic of moving the capital was often brought up.

In August 2019, Indonesian President Joko Widodo announced that he would move the Indonesian capital from Jakarta to East Kalimantan.

The report pointed out that this time, Jokowi announced that the relocation of the capital was not a whim. As early as 3 years ago, the Indonesian government has been engaged in internal discussions. In May 2019, Jokowi also worked with cabinet members on a field trip to the new capital candidate area.

Jokowi said that Jakarta, as the country's political, commercial, financial, trade and service center and Indonesia's largest airport and seaport, is too burdensome, and the new capital will promote the country's equal development and reduce the burden on Jakarta.

Why move the capital? The report pointed out that unbalanced economic development and the natural environment are the two most important reasons.

The island of Java, where Jakarta is located, has long been a major area of Indonesia's economic development. According to Indonesian local media reports, in 2018, Java Island, which accounted for only 6% of Indonesia's total area, accounted for 58.48% of the country's GDP, while the central and eastern islands, which accounted for more than 60% of Indonesia's area, contributed less than 17% to GDP.

Therefore, Jokowi said that the relocation is to "achieve a balance of economic development", hoping to promote the development of Indonesia's central and eastern regions.

In addition, Jakarta's natural environment is another major reason for the relocation of the capital. According to CNN, according to relevant data released by the World Economic Forum, Jakarta has become one of the fastest sinking cities in the world. Due to the over-exploitation of groundwater, the ground is sinking at an alarming rate. In West Jakarta, the ground sinks 15 centimeters a year and the eastern part sinks 10 centimeters a year.

Moreover, Jakarta sits on a swampy area with 13 rivers in the city, making it prone to flooding. In addition, in recent years, many parts of Indonesia have suffered heavy rainfall, causing floods, and the lives of some citizens have been affected.

Indonesia will move its capital at an estimated cost of $32 billion and begin implementation as soon as 2024

Infographic (Source: New Delhi Television)

In addition, Jakarta's large population and extreme traffic congestion are a veritable "blockage". In June 2019, according to the Java Post, Jakarta ranked 7th in the world in terms of congestion in 2018.

The report pointed out that these "heavy burdens" shouldered by Jakarta not only made its capital function face a huge test, but also more and more highlighted the "imminent" relocation of the capital.

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