Indonesia Moving Forward with Plans for New Capital

October 2021

The president of Indonesia, Joko “Jokowi” Widodo, has just approved the government work plan (RKP) of 2022, which allocates over USD 32 million for the country’s new capital city project in East Kalimantan. Moreover, the President expects that basic facilities could be operational in 2024, expecting works to continue for the following 15 to 20 years.

It has been reported that ongoing work on the new capital city will use the budget of existing infrastructure projects to avoid diverting funds from programs essential to the country’s COVID-19 response.

19% of the project’s total costs will be covered by the state budget, with the remainder to come from the private sector and foreign investors. The capital city will occupy 256,000 hectares in the East Kalimantan regencies of North Penajam Paser and Kutai Kartanegara, and is designed to relieve pressure off Jakarta, which currently serves as the country’s administrative center and business hub.

Moreover, the National Development Planning Minister revealed that the development of the new capital city will include measures to address the impacts of climate change and pollution. In effect, one of Jakarta’s most pressing problems is represented by its chronically high levels of air pollution.

(Sources:; The Jakarta Post)

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