Bappenas: Capital City Relocation to Reduce Java Island’s Burden

Jakarta, InfoPublik – Head of the National Development Planning Agency (Bappenas) Bambang Brodjonegoro said the reason behind the government’s plan to relocate the capital city is to reduce the burden of Java Island.

"The concept of this discourse is mainly the reduction of the burden of Java Island. We also learn from the experience of another countries that the relocation of capital city means burden sharing and the growth of economic activities around the new capital" said Bambang at the Indonesian House of Representatives Commission XI Jakarta, Monday (17/6).

Currently, he added, Java Island contributed 58% to Indonesia’s total GDP and 57% (150 million people) to the total population of Indonesia.

To finance this relocation, according to Bambang, the government will boost alternative financing to prevent dependence on the state budget.

"Alternative financing will be encouraged by the involvement of the private sector, state-owned enterprises as investors, cooperation between government and business entities, and cooperation in asset utilization. The four combinations are expected to minimize the use of state budget," he said.

He added that the government's budget will only be used to build basic infrastructure and several government buildings such as the State Palace, Parliament building, and high institution buildings. Bambang also said that the capital city would almost certainly be moved to Kalimantan Island.

"The capital city is most likely to be relocated to Kalimantan Island. The exact location is to be decided next," he said.

Reporter: Isma

Translator: Wilda Stiana