New homes for 1.5 million civil servants needed in future capital of Indonesia

Indonesia’s President, Joko Widodo, has announced that planning is underway to move the capital to Borneo. Jakarta, the current capital, is overcrowded and prone to flooding as much of the city is below sea level and will continues to sink. Physical infrastructure works for the new capital is expected to begin in 2024.

The new capital will be located in East Kalimantan Province near Samarinda and the port city of Balikpapan. Homes for around 1.5 million civil servants will be required.

The shift is estimated to cost around US$33 billion, of which around 20 per cent of the bill will footed by the government, and the rest coming from public-private partnerships and private investment.