Hutama Karya awaits govt scheme to build new capital city

Hutama Karya awaits govt scheme to build new capital city

State-owned construction company PT Hutama Karya President Director, Bintang Perbowo (left) in a discussion with the media on Thursday (Sept 5, 2019). (ANTARA/Afut Syafril/rn)

Jakarta (ANTARA) - State-owned construction company, PT Hutama Karya, hinted that it has been awaiting a cooperation scheme from the government on the planned construction of Indonesia's new capital city in East Kalimantan Province.

Hutama Karya might be requested to invest in the construction of the new capital city but it is yet to know the cooperation scheme the government would offer, the company's president director, Bintang Perbowo, said here on Thursday.

Speaking at a discussion forum held at the State-Owned Enterprises Ministry here, he said the relocation of the capital city might also lead to the central government leaving its properties in Jakarta behind.

The government has stated that it would not use much of the state budget to construct the new capital city. Therefore, the government's assets in Jakarta could be optimized, he said.

Related news: Public Works Ministry ready to build capital city in East Kalimantan
Related news: New capital city to not become new autonomous region: Minister


President Joko Widodo (Jokowi) had officially announced his decision in a state address that he delivered before members of the parliament and VIP guests on August 16, 2019.

The new capital city would not only be a symbol and an identity of the country, but it would also represent the progress of the nation. Moving the capital city would also increase the equity and equality of the country's economic development, he said.

"This move is for the 'Indonesia Maju' (Onward Indonesia) Vision. Long live Indonesia," he conveyed in his state address.

Regarding the relocation of the capital city, the National Development Planning Agency (Bappenas) has pegged the total cost to move the state capital at nearly Rp466 trillion.

"Of the total cost of Rp466 trillion, the required state budget is only some Rp30.6 trillion," National Development Planning Minister, Bambang Brodjonegoro, had remarked on June 15, 2019.

The National Development Planning Ministry revealed that the new capital city needs utility and public facilities, as well as office buildings.

The government's decision to relocate the country's capital city from Jakarta to East Kalimantan Province had triggered various reactions in the society.

Indonesians who disagree with the central government's decision argued that instead of going ahead with the relocation of the capital city, the Joko Widodo-Ma'ruf Amin administration should resolve the many crucial problems currently gripping Indonesia.

For the government and political elites who support this decision, relocating the capital city to Kalimantan, which is regarded as the center of the Indonesian archipelago, would boost regional development outside the densely-populated island of Java.

Related news: Kalimantan forest to remain intact despite capital development
Related news: Capital city relocation to improve welfare of Jakartans: Governor

Comments