The Indonesian government will upgrade Jakarta after announcing plans to move the capital to East Kalimantan on Borneo island.
On the other hand, the National Development Minister of Planning, Bambang Brodjonegoro, said US $ 40 billion was needed to upgrade Jakarta in the coming decades.
“The capital city of Jakarta will undergo a process of urban redevelopment and that will cost US $ 40.18 billion over the next 10 years, and over US $ 33 billion to build a new capital on Borneo island. The government yet to decide the name of new capital”, Bambang said.
“Jakarta is the center of all activities in Indonesia. We are just moving the administrative center, but finance (center), business and trade for the global visitors will remain here in (Jakarta), ”Bambang said in an interview with Reuters.
The present capital is one of the most densely populated cities in the world, with a population of over 10 million people, which is three times higher than those living in the surrounding cities.
Meanwhile, Bambang said the decision to move the Indonesian capital was made because the government was aware that the over population in the city needed to be reduced.
He said the Indonesian government is expected to move to a new capital in East Kalimantan by 2024.
“People think that the situation in old capital is good. The city is not in good shape at all.
“Water is a source of concern, in addition to sewage and air pollution problems,” Bambang Brodjonegoro said.
National Development Minister of Planning said only 60 per cent of all Jakarta had access to water supply infrastructure, forcing millions of residents and businesses to dig wells to obtain groundwater, thus polluting the environment. Heavy investment required to changes the infrastructure of Jakarta to uplift the standards of residents, he said.