Domestic developers can collaborate with representatives of foreign companies in building embassy offices at the new capital, said National Development Planning Minister Bambang Brodjonegoro, who is also chief of the National Development Planning Agency (Bappenas), during the opening of the national working meeting of the Indonesian Chamber of Commerce and Industry (Kadin) Wednesday. "Admittedly, most of the embassies have offices in Jakarta. However, they have to at least open their offices in East Kalimantan. This is an opportunity because many countries need to open embassies there," he said.
The government is required to relax certain rules for domestic developers so that they can collaborate with representatives of foreign countries in building embassy offices on land with a clear status, Bambang said.
The government plans to make available 180 thousand hectares of land for the development of the administrative area (government activity) and supporting facilities such as the Presidential Palace, House of Representatives/People's Consultative Assembly (DPR/MPR) Building, all ministerial offices and official houses for state civil apparatuses.
The private sector can use four thousand hectares for the development of landed houses and vertical housing (apartments).
"In the first phase, the area consists of six thousand hectares of flat land and four thousand hectares of hills. The private residences will be built in the hilly areas," he said.
The government is also offering developers the opportunity to build supporting facilities including hospitals, school buildings, shopping centers and hotels.
The development of the new capital will cost an estimated Rp466 trillion of which 19.2 percent will come from the state budget. 54.4 percent from government-corporate body cooperation scheme and 26.4 percent from the private sector including state-owned companies.
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