Minister: Indonesia pledges $40 billion to modernize Jakarta ahead of new capital
  • WORLD

  • 11:12 29 August 2019

Minister: Indonesia pledges $40 billion to modernize Jakarta ahead of new capital

The Indonesian government is not abandoning Jakarta after announcing plans to move the country’s capital, its planning minister said, pledging to spend $40 billion to save the slowly sinking city in the next decade, ONA reports citing Reuters.

The current Indonesian capital will undergo a 571 trillion rupiah ($40.18 billion) urban regeneration in the next 10 years, more than the $33 billion expected cost to build a new capital city on Borneo island, Bambang Brodjonegoro told Reuters in an interview.

“Jakarta is the center of everything in Indonesia. What we are moving out of is the center of administration, but finance (centers), businesses and trades will stay,” Brodjonegoro said.

Brodjonegoro said the relocation decision was taken because the government knew the population concentration in Jakarta has to be reduced.

The government expects to begin moving to the new capital city in the East Kalimantan province in 2024.

“People assume Jakarta is doing fine. Jakarta is not doing fine at all. The water condition is a cause for concern, wastewater, air pollution,” he added.

Only 60% of the city has pipe water infrastructure, forcing millions of people and businesses to dig wells to use up groundwater, hurting the environment, Brodjonegoro said.

The biggest chunk of the spending would be for mass transportation, such as lengthening the newly built track for its mass rapid transit (MRT) system, a new loopline railway, more commuter lines, bus-only lanes and flyovers, Brodjonegoro said.

ONA

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