President Jokowi: "My Way for Moving Indonesia's Capital"

Construction of New Capital on Borneo Island in 2024
Seeking Investors for 2032 Olympic Games Hosting

[Asia Economy Jakarta Correspondent Sujin Choi] Indonesia plans to complete the relocation of its capital as scheduled by 2024. Additionally, it has begun contacting world-renowned figures to host the Olympics in the new capital by 2032.

According to local media such as The Jakarta Post on the 31st, Indonesian President Joko Widodo has started seeking investors with the goal of hosting the 2032 Olympics after relocating the capital to the eastern region of Borneo Island (East Kalimantan). Indonesia announced its intention to bid for the Olympics last August. To this end, President Joko Widodo recently discussed investment support measures with Masayoshi Son, chairman of Japan's SoftBank.

Chairman Son had previously expressed his desire to make additional investments in Indonesia in January. He also mentioned investing $2 billion in the local delivery app company Grab. There were reports that Chairman Son is evaluating Indonesia’s new capital plan for new investments.

Indonesia is using the capital relocation as an opportunity to consolidate national capabilities. Luhut Binsar Pandjaitan, Minister of Maritime Investment Coordinating Board, recently stated, "Despite the COVID-19 pandemic, the capital relocation is progressing without setbacks." Jodi Mahardi, Special Commissioner of the Maritime Investment Coordinating Board, said in a joint meeting with state-owned enterprises and the Ministry of Finance, "We continue to hold meetings with potential investors interested in participating in the construction of the new capital."

The new capital will be built on approximately 256,000 hectares spanning North Penajam Paser and Kutai Kartanegara in East Kalimantan.

To complete the capital relocation by 2024, land permits are planned to be finalized within this year. Hayu Prasasti, Secretary of the Capital Relocation Planning Office at the Ministry of National Development Planning, announced that road construction for the new city will begin with a soft launch in July.

Jakarta was established in 1527 as a center for spice trade when Java Island was the hub of Eastern maritime trade. Since then, it has served as the capital for over 500 years, starting from the victory day of the Patahila troops who expelled the Portuguese. During the 350 years of Dutch colonial rule, it was called Batavia, and after Japanese colonization in 1942, it was renamed Jakarta. The name Jakarta means "perfect victory."

Despite its long history, Jakarta faces chronic traffic congestion, pollution, frequent flooding, and ongoing erosion problems that are difficult to resolve. The Joko Widodo administration decided to relocate the capital last August.