Indonesia's New Capital City.

Indonesia’s president, Joko Widodo has announced the national capital will move from Jakarta, on the island of Java, to the province of East Kalimantan, partly in North Penajam Paser Regency and partly in Kutai Kartanegara Regency. And that certainly has advantages and disadvantages.

Pada siang yang berbahagia ini, saya menyampaikan bahwa pemerintah telah melakukan kajian mendalam, terutama tiga tahun terakhir. Hasilnya, lokasi ibu kota baru paling ideal adalah di Kalimantan Timur, sebagian di Kab. Penajam Paser Utara dan sebagian di Kab. Kutai Kartanegara. - Jokowi on twitter

One of the advantage is because on the island of Kalimantan still has vacant land and it can also be seen that the island of Kalimantan has very less earthquake points compared to other islands. So it is very good if the transfer of the capital is moved there.

The disadvantage is that the complete facilities and infrastructure in Jakarta must now be rebuilt in the new capital city. So the process will take quite a long time.

This is a plan that has been suggested by various Indonesian presidents over decades, but it looks like the move will finally, actually happen. Widodo said the government will prepare a bill to be considered by the House of Representatives. If approved, construction could start next year.

“The location is very strategic – it’s in the centre of Indonesia and close to urban areas,” the president said in a televised speech. “The burden Jakarta is holding right now is too heavy as the centre of governance, business, finance, trade and services.”

President Joko Widodo explained the source of funding for the development of Indonesia's new capital city in East Kalimantan Province. Jokowi admitted, there were many people who asked him about this funding source.

“We need to convey, the total needs for a new capital city is approximately Rp. 466 trillion” said President Jokowi.

Later, 19 percent of the funding needs will come from the state budget. However, the intended APBN is not only sourced from the budget allocated specifically for the development of the national capital. "However, it is derived from the cooperation scheme for managing existing assets later in the new capital with those in Jakarta," Jokowi said. "The remaining (budgetary requirements) come from Government Cooperation with Business Entities or PPP and private direct investment and SOEs," he said.