Govt to Build New Capital City on 300,000-hectare Land
Translator: Dewi Elvia Muthiariny, Editor: Markus Wisnu Murti, 3 May 2019 21:59 WIB
TEMPO.CO, Jakarta - Agrarian and Spatial Planning Minister/National Land Agency (BPN) chief Sofyan Djalil said the country’s new capital would be established on a 300,000-hectare land plot belonging to the state so as to lower construction costs.
“Yes, as much as possible [the capital is built on state land]. If possible, all of the areas. So the construction costs and land clearance costs will be minimum,” Sofyan told a press conference at his office, Friday, May 3.
Sofyan explained the government would still need money to prepare the land, such as for cut and fill, “[while] the cost for land clearance will be almost zero.”
Sofyan, however, was non-committal when asked about the most potential location to be transformed as the new capital. “We have identified three to four regions. Those areas have met the requirements,” he added. One of the possible areas is located on Kalimantan Island.
He added the location of the new capital should also be free of disaster risks—despite the present rarity of areas that were 100 percent free of disaster potentials.
“Generally, our spatial planning is very concerned about disasters. So we are making plans for areas that are prone to disasters so there will be less in the future. We cannot shun disasters,” he added.
The planned relocation of the country’s capital again seized the public spotlight after President Joko “Jokowi” Widodo convened a limited cabinet meeting on the issue.
In the meeting, Jokowi chose to take the alternative of removing the capital outside Java Island.
https://en.tempo.co/read/1201820/govt-to-build-new-capital-city-on-300000-hectare-land
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Indonesia open to foreign investment in projects for new capital city
Bambang Nurbianto - The Jakarta Post, Fri, May 3, 2019 / 11:51 am
National Planning Minister Bambang Brodjonegoro said Indonesia welcomed foreign investors for the development of a long-debated new capital city, a plan revived by President Joko “Jokowi” Widodo on Monday.
“We will give priority to domestic resources, but we do not close the door to foreign investment,” Bambang, who also heads the National Development Planning Board (Bappenas), told The Jakarta Post on Thursday.
When chairing a Cabinet meeting on Monday, Jokowi decided to push an old plan to relieve Jakarta of its function as the capital and confer that status onto another city, outside of Java. No decision has been made yet on which city that may be, but Palangkaraya in Central Kalimantan has been discussed as an option.
During the meeting, Bappenas presented its initial study on the capital city relocation plan. The ministers discussed possible cities that could become the new political and government hub, amid environmental concerns and overcrowding in Jakarta.
The move is estimated to cost between US$23 billion and $33 billion.
Bambang said the financial resources to develop the new capital would come from the state budget, state-owned enterprises (SOEs) and the private sector, through public-private partnerships (PPP) and private investment.
He explained that the PPP scheme was preferred for developing the infrastructure in the new city, while SOEs and private parties were expected to invest in the residential facilities and commercial areas.
“Meanwhile, the state budget is prioritized [as the funding source] for developing basic infrastructure like clean water facilities, waste management, roads and public transportation,” Bambang said.
He noted that Bappenas had not yet concluded its study on moving the capital. (bbn)
https://www.thejakartapost.com/news...estment-in-projects-for-new-capital-city.html
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