No decision yet on new location of Indonesia's capital city, says minister

JAKARTA (Jakarta Post/Asia News Network) - The government has announced it will begin preparations next year (2018) to move the capital from Jakarta, which will remain the country's business and financial centre.

But a decision on where the new capital will be has not yet been made.

President Joko "Jokowi" Widodo has ordered the National Development Planning Agency (Bappenas) to undertake a technical study for the relocation of the capital city, Agrarian and Spatial Plan Ministry Sofyan Djalil said on Tuesday July 4).

Sofyan, however, declined to confirm that Palangkaraya in Central Kalimantan has been chosen to become the new capital city as previously mentioned by many experts and government officials.

"We are still seeking alternatives," Sofyan said as reported by

National Development Planning Minister Bambang Prodjonegoro, who is also head of the National Development Planning Agency, said previously that his office and the Public Works and Housing Ministry would try to complete the study this year so that the infrastructure could be developed next year.

Three aspects that are being considered by the government for the relocation of the capital city are location, city spatial planning and funding.

Bambang stressed the new capital city should be located outside of Java, preferably in Kalimantan, while the funding might come from a public-private partnership (PPP).

"We encourage cooperation between the government and private companies," Bambang added.

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