Why Indonesia plans to relocate capital city from kakarta

Indonesian President Joko Widodo announce on Monday the relocation of the country’s capital from Kakarta to Borneo due to it’s dense traffic and sinking grounds. The relocation of the capital city is a strategical plan due to the location of the new site as it seats at the center of the country.

Widodo said the country’s new administrative center will be built in a forested area that straddles the border between the districts of Kutai Katanegara and North Penajam Paser in East Kalimantan province near the city of Balikpapan.

He said, Risks of disasters such as flooding, earthquakes, tsunamis and volcanic eruptions are minimal because the location is strategic and it’s in the center of Indonesia.

A study by the Bandung Institute of Technology found that as much as 36 per cent of Jakarta could be lost underwater by 2050

He said a draft law on the new capital would be submitted to the legislature on Tuesday.

The president said Jakarta is busy due to its statues as the commercial center of the country and java island.

The government plans to move to a new capital by 2024, at the end of Widodo’s second five-year term in office. Officials said the move is expected to cost up to $33 billion. Funding will involve allowing developers to manage government-owned property in Jakarta in return for helping build the new city.