Jokowi to Use Capital Relocation as a Bargaining Chip

By Editorial Team 20/08/2019
Summary

The plan to move the administrative headquarters out of Jakarta is intensifying. In his annual state of the nation address to elaborate the 2020 state budget plan (RAPBN) during the parliamentary plenary session on Friday, President Joko Widodo revealed his intention to move the capital from Jakarta to one of the major cities in Kalimantan Island. The move will hopefully trigger equitable economic development and prosperity.

The president even insisted that the capital move will not strain the state budget. The funds for the relocation would come from the government-to-business scheme (KPBU), private investments, and maximizing state asset utilization. The government also considered swapping the ownership of the government’s buildings, such as state administration offices, in Jakarta to interested companies. Jokowi expected the capital relocation to complete in 2024 and Jakarta would function as business city onward.

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