President Joko Widodo

Indonesia’s capital to relocate due to sea level rise and over-extraction of groundwater

by Tabita Diela, Reuters

Indonesia’s plan to move its capital off the main island of Java will require investment of about $20 billion to $30 billion, a minister said on Tuesday, even though the government has yet to decide on a new location.

President Joko Widodo on Monday approved a plan to relocate government offices away from Jakarta less than two weeks after private pollsters indicated he had won an April 17 presidential election.

Jakarta is home to more than 10 million people, but around three times that many live in the surrounding towns, adding to severe traffic congestion that the government estimated costs $7 billion in economic losses each year.

Bambang Brodjonegoro, Widodo’s planning minister, said the government will design a new capital to house 900,000 to 1.5 million people, mostly government employees and their families.

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