Indonesia to allocate 2.1 bln USD to finance capital relocation

Source: Xinhua| 2019-05-16 22:54:20|Editor: Mu Xuequan
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JAKARTA, May 16 (Xinhua) -- The Indonesian government planned to allocate some 30.6 trillion rupiah (about 2.1 billion U.S. dollars) to finance the capital city relocation project, seeking partnership with state-run firms and the private sector to carry out the project, Indonesian Development Planning Minister Bambang Brodjonegoro said here on Thursday.

The planned allocation would be from the state budget, and the capital relocation construction process is expected to complete within five years, the minister said.

"It means that state budget would allocate some six trillion rupiah (about 415.2 million U.S. dollars) each year to finance projects for the new capital city," Bambang said.

The government planned to seek partnership with state-run firms and the private sector to get the remaining funds to finance the capital relocation, he said. Projects related to the capital relocation may totally require some 466 trillion rupiah (about 32.2 billion U.S. dollars), reports said.

The minister said funds from the state budget would be allocated to finance land procurement, green public space and the construction of the presidential palace and headquarters of police and military.

The total areas required for the new capital city is estimated to reach 40,000 hectares, he added.

Projects financed by non-state budget allocation are education facilities, housing for civil servants, police and military personnel, among others, Brodjonegoro said.

Indonesian President Joko Widodo has affirmed relocation of the capital city to a place outside the heavily-populated Java last month.

The president has considered Kutai Kartanegara regency or Gunung Mas regency respectively in East and Central Kalimantan provinces as the new capital city, after visiting the places earlier this month.