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Indonesia to continue new capital city project amid economic pressure

With an area of about 127,000 square km, East Kalimantan is home to more than 3.7 million people.

IANS | Jakarta |

Indonesia will continue its plan to build a new capital city in East Kalimantan province on the island of Borneo despite the economic pressure due to the raging Covid-19 pandemic, President Joko Widodo said.

Widodo made the remarks at a meeting with a senior minister and several business associations here on Wednesday, reports Xinhua news agency.

“The President said the development plan of a new capital city will continue to be carried out,” Coordinating Minister for Economic Affairs Airlangga Hartarto said after the meeting.

Widodo announced in August 2019 that a new capital city would be built between the districts of North Penajam Paser and Kutai Kartanegara in East Kalimantan province.

With an area of about 127,000 square km, East Kalimantan is home to more than 3.7 million people.

The relocation of the capital city is highlighted in the 2020-2024 National Medium-Term Development Plan.

The ground-breaking was initially expected to be conducted in August last year, but it was delayed due to the pandemic.

According to Hartarto, the project was estimated to take up to 20 years.