East Kalimantan

– Indonesia New Capital / East Kalimantan –

Indonesian President Joko Widodo has picked East Kalimantan as the location for Indonesia’s new capital in order to relieve the strain on Jakarta.

“Jakarta has received overwhelming burdens as the centre of administration, business, finance, trade and services, as well as (housing) the country’s largest airport and seaport,” Mr Joko, popularly called Jokowi at home, told a media briefing yesterday.

The burden on Java Island, where Jakarta is, has been mounting, as it is home to 150 million people, or 54 per cent of Indonesia’s population, and accounts for 58 per cent of its gross domestic product, Mr Joko said.

Shifting the capital outside Java would help make future economic development more equitable, he added.

But first, Parliament will have to pass a law to greenlight the President’s plan, which could cost billions of dollars and take shape over the next few years.

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