"The new capital city will not become a new autonomous region, new district, or city administration, no. This will be akin to those in Putrajaya (Malaysia)," Kumolo stated here on Tuesday while citing the example of BSD City in South Tangerang, Banten.
The minister confirmed that the new capital city will remain part of the districts of Penajam Panser Utara and Kutai Kertanegara, while Jakarta will continue to be the hub of economic activities.
The capital city’s relocation is expected to reduce Jakarta's burden. Related news: Time to shift capital city to Kalimantan: Jokowi
"In principle, no problem will be encountered, as Jakarta already bears a heavy burden. It will still become the hub of economic activities," Kumolo explained.
Speaking in connection with the regulation on the relocation of the capital city, Kumolo remarked that the government will discuss the matter with the House of Representatives.
President Joko Widodo (Jokowi) had made an official announcement on Monday of the new capital city site.
"The most ideal location for the new capital city is in parts of Penajam Paser Utara District and parts of Kutai Kertanegara District in East Kalimantan Province," Jokowi stated.
The decision to transfer the capital city was based on some considerations, including the clean water crisis in Java Island and substantial land conversion in the densely populated island.
It also recorded massive urbanization that was solely concentrated in Greater Jakarta, not to mention the major traffic snarls, unhealthy air quality, flooding, and land subsidence of Jakarta.
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