“At this historical moment, in the name of Allah Subhanahu Wa Taala , I'd like to ask permission and support from the members of House of Representatives, respected members of the country, and the people in Indonesia to move the capital city to Kalimantan Island,” President Joko Widodo (Jokowi) said during the state of the nation address.
Jokowi, who wore traditional Sasak attire, explained that the capital city would not only be a symbol and an identity of the country, but also it would also represent the progress of the nation.
For the president, moving the capital city from Jakarta to Kalimantan Island would increase the equity and equality of the country’s economic development.
"This move is for 'Indonesia Maju' (Onward Indonesia) Vision. Long live Indonesia," Jokowi noted.
In early August, President Jokowi said the definitive location of Indonesia's new capital would be announced after all comprehensive studies on its relocation had been completed and problems related to it had been resolved.
Jokowi, however, had confirmed that Indonesia's capital city would be relocated to Kalimantan Island.
In connection with this capital city relocation issue, the National Development Planning Ministry and the National Development Planning Agency (Bappenas) has conducted studies and reviews on several locations in Kalimantan Island.
Last July, National Development Planning Minister Bambang Brodjonegoro said the new capital city development would not destroy forest and peatland covering most of the Island's area.
"The area (that will be developed as a new capital city) is vacant. Thus it will not disrupt the forest," Brodjonegoro said.
Regarding the cost of moving the state's capital city, Bappenas has estimated that it would be nearly Rp466 trillion. "Of the total cost of Rp466 trillion, the required state budget is only around Rp30.6 trillion," Bambang Brodjonegoro said on June 15, 2019.
Based on the estimates compiled by Bappenas, the Rp30.6 trillion from the state budget will be used to build state palaces and military/police strategic buildings as the principal functions, green open spaces as helping functions, and for land acquisition.
Aside from the state budget, the Government and the Business Entity Cooperation scheme worth Rp340.6 trillion and private sector funds worth Rp95 trillion will complete the total amount of Rp466 trillion required for the transfer of the state capital.
Funds from the Government and Business Entity Cooperation will be utilized for the construction of government buildings (legislative, executive, judiciary), official housing (multistorey and house-to-house for State Civil and Military/Police Apparatus), educational facilities (on the elementary, middle, and high school level), health facilities, correctional institution, infrastructure such as roads, electricity, telecommunications, water supply, drainage, waste treatment, and sports facilities.
Moreover, funds from the private sector will be used for building educational facilities (at the university level) and health facilities.
"So the majority of us are cooperating with the private sector and SOEs, the state budget is only a trigger. We will also use existing assets," he revealed.