Indonesia’s new capital city project postponed again
The Indonesian government put on hold the project on developing a new capital city in East Kalimantan and will not allocate budget for the Ministry of Public Works and Housing (PUPR) in 2022.
Indonesia plans to build new capital city in East Kalimantan province. (Photo: AFP)
Jakarta, June 3 (VNA) - The Indonesian government put on hold the project on developing a new capital city in EastKalimantan and will not allocate budget for the Ministry of Public Works andHousing (PUPR) in 2022.
The project has been postponed for over two years afterits announcement.
At a hearing before Committee V of the House of Representatives on June 2,PUPR's representative asserted that the government has not allocated the 2022 budgetfor the project.
In2022, the ministry proposed a budget worth over 100.46 trillion rupiah (over 7billion USD), a steep reduction from the figure of 149.81 trillion rupiah in 2021.
Earlier,the National Planning Development Authority said that the total sum needed to move the city from its current location in Jakarta to East Kalimantanprovince amounted to 486 trillion rupiah, of which 265.2 trillion will be mobilised through the public-private partnership (PPP), 127.3 trillion from private special funds, and 93.5 trillion from the state budget.
The Ministry ofFinance said that the government has switched its priorities to mitigating theeffect of COVID-19. The ministry announced that it has not allocated budgetfor the new capital project this year./.
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Indonesia plans to build new capital city in East Kalimantan province. (Photo: AFP) 
