With Jakarta Bursting At The Seams, Indonesia To Get A New Federal Capital In East Kalimantan: President Widodo

Indonesian President Joko Widodo announced on Monday (26 August) that he has picked two regencies in East Kalimantan as the location for Indonesia's new capital, The Jakarta Post reported.

Jakarta has served as the administrative, financial and trade centre of Indonesia since the country won independence in 1949.

"The government has conducted in-depth studies in the past three years and as a result of those studies the new capital will be built in part of North Penajam Paser regency and part of Kutai Kertanegara regency in East Kalimantan," the President said at a press conference at the State Palace in Central Jakarta today.

"Jakarta has received overwhelming burdens as the centre of administration, business, finance, trade and services, as well as (housing) the country's largest airport and seaport,"  Joko added during the briefing.

The burden on Java island is also increasing because it is now home to 150 million people, or 54 per cent of the population, he added. Under the new relocation plan, Jakarta will be the commercial capital of the country, while a new city will become Indonesia's administrative capital - similar to Kuala Lumpur and Putrajaya in Malaysia.

The Indonesian government will now prepare a bill regarding the capital relocation to seek the approval of the country's parliament.