New capital bill ready for House approval

JAKARTA: Indonesia is ready to seek parliamentary approval for a bill to accelerate the construction of a new capital that’s drawn interest from investors across the world, according to President Joko Widodo.

The National Development Planning Agency may submit the bill to the parliament this week, Jokowi, as the president is known, told a cabinet meeting in Jakarta yesterday. The bill, once passed by lawmakers, will serve as the legal basis for the new capital, he said.

Jokowi urged ministers to expedite mapping of the project to determine the role of the private sector in financing the construction of the yet-to-be named capital on Borneo island. The government aims to start the construction of basic infrastructure later this year, he said.

The bills on capital relocation along with job creation and taxation are part of the sweeping reforms pushed by Jokowi to boost investment and growth. The new capital, to be built at a cost of about US$34 billion (about 1.01 trillion baht), has already drawn interest of investors from China, the Middle East and the US, according to officials.

“The concept of the new capital development as a smart metropolis has been noticed by the world and countries have even started to express their interest,” Jokowi said. “That’s why we need to prepare details for partnerships with other countries. I want us to take steps to accelerate the process.”

Abu Dhabi Crown Prince Mohammed

Bin Zayed Al Nahyan, SoftBank Group Corp founder and chief executive officer Masayoshi Son and former British prime minister Tony Blair are part of an advisory panel on the new capital. The country has hired McKinsey & Co to review the master plan.

Jokowi is counting on private and state-owned entities to bear about 80% of the cost of building the capital. Authorities will move the capital in phases from 2024.