Jokowi’s plan to shift capital will overcome obstacles

Significance

He informed his cabinet of his determination to move the seat of government from Jakarta in late April, shortly after the simultaneous presidential and parliamentary elections in which he retained power and a legislative majority in support of his administration.

Impacts

• There will be opportunities for independent agencies to undertake further feasibility studies relating to the proposed shift.
• Once the shift is endorsed, there will be extensive opportunities for utility and construction companies to develop new infrastructure.
• Land prices in East Kalimantan will increase sharply.