Indonesia Moving Capital: Plan expected to bring economic benefits to the country
Updated 22:30, 06-May-2019
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03:15
Indonesian President Joko Widodo is reviving plans to move the country's capital city out of Jakarta. Although experts expect the plan to bring economic benefits, others believe the move would cost an unnecessarily large amount of money -- as much as 33 billion US Dollars. CGTN's Silkina Ahluwalia has more from Jakarta.
Over the years, Jakarta has quickly become a densely populated city. Home to more than 10 million people accommodating all of its residents has proven to be complicated. The city has gotten so crowded that the Indonesian government confirmed its decision on relocating Indonesia's capital city. The plan to move has been long discussed more than 60 years in the making.
YAYAT SUPRIATNA CITY PLANNING EXPERT "We live in a city where traffic jams cost us up to 42 million US Dollars a year. On top of that, Jakarta is pressurised by modern urbanisation, poverty and land subsidence, among other issues. It seems the government wants to separate Jakarta's problems from those of Indonesia so they can deal with them properly. If a city is causing this much problem, it is a wise choice for government officials to move out of here."
Jakarta is also carrying the burden of being the centre of government services as well as a hub for businesses. Experts believe Indonesia's development has become too focused on the island of Java. Relocating the capital city would spread out economic growth evenly across the country. However, economists predict the move would come with several challenges.
BHIMA YUDHISTIRA ECONOMIST "The disadvantage is we can relate to the cost of moving to the new capital. I think it's very expensive and it can take more than 10 years, not only for the infrastructure projects but for the city planning until finish. The second one, it can create the new problem of inequality because Jakarta people move the government to the new capital city in Palangkaraya in Kalimantan, for example, so there will be gap in wages, gap in income between the new people and the local people."
The government hasn't mentioned where it is likely to move its capital city but Palangkaraya in Central Kalimantan is one of the front-runners. The Nation's founding father, President Sukarno proposed this idea back in 1957.
SILKINA AHLUWALIA JAKARTA, INDONESIA "Jakarta is located on the island of Java. Nearly 60 percent of Indonesia's 260 million people reside on this coastline. It's also located in the red zone area, prone to natural disasters like earthquakes, flooding and volcanic eruptions. Moving the capital city to Kalimantan, for example, would be a much safer choice."
The government believes the move could present Indonesia with opportunities to become a more developed country and a strong powerhouse in the global economic front. Silkina Ahluwalia, CGTN, Jakarta.