Okay, It's Official Now. This Will Be The Location of Indonesia's New Capital

Finally, in a few years, Jakarta will relinquish its title as Indonesia’s capital city to a new location in East Kalimantan province.

President Joko Widodo just made a national address this afternoon from the State Palace, ending months of speculation regarding the new location of the country’s capital. “The most ideal location for the new capital is partly in North Penajam Paser regency and partly in Kutai Kartanegara regency,” Jokowi said in his address at the State Palace, flanked by his Vice President Jusuf Kalla, Jakarta Governor Anies Baswedan, East Kalimantan Governor Isran Noor, as well as cabinet ministers.

The two regencies intersect in the mid-point between Balikpapan and Samarinda, the two biggest cities in East Kalimantan, with the latter being the province’s capital. Jokowi said the new site’s proximity to the two cities was a major factor in the government’s decision, as it could take advantage of their existing infrastructure such as airports, and it has 180 thousand hectares of government-owned land.

According to the National Development Planning Board (Bappenas), development of the new capital city will be started in 2021, and the construction of government buildings is targeted for completion in 2024. 

The project is expected to cost up to US$32.3 billion) to be covered by the State Budget, Public Private Partnership scheme, and private investment.