KUCHING: The Indonesian Parliament on Tuesday (Jan 18) has passed a law to relocate the nation’s capital from Jakarta to Kalimantan on Borneo Island.
As reported by Reuters, National Development Planning Minister Suharso Mohoarfa said the new capital has a central function and is a symbol of the identity of the nation, as well as a new centre of economic gravity.
Southeast Asia’s largest economy has envisioned the new capital as a low-carbon “super hub” that will support pharmaceutical, health and technology sectors and promote sustainable growth beyond Java island.
However, Reuters reported that critics say the law was rushed through with limited public consultation and environmental consideration.
The new capital will be called “Nusantara”, a Javanese name for the Indonesian archipelago of which was chosen by the Indonesian President Joko Widodo.
Nusantara — which follows the creation of new capitals in countries like Brazil and Myanmar — will be led by a chief authority whose position is equivalent to a minister, deputy chair of the bill’s special committee.
In 2019, Jokowi first announced the plan of the relocation of the capital, but progress was delayed by the pandemic.
It was also reported that Indonesia has set aside US$35.8 million (US$1=RM4.18) in the 2022 State Budget for the construction of the new capital. The entire project costs US$35 billion.
