INDONESIA Jakarta will no longer be the capital of Indonesia

A view of the Jakarta skyline looking north Jakarta Indonesia

A view of the Jakarta skyline looking north Jakarta Indonesia

National Development Planning Minister Bambang Brodjonegoro said that the government made a decision to leave Java, the country's main island, but has yet to decide on a new location.

Earlier this month, Widodo secured another term in office, according to independent polling organizations.

Widodo, known as Jokowi, secured 56.2% of the votes, compared to 43.8% for challenger Prabowo Subianto with ballots from 52% of the polling stations tallied, according to an online count by the General Elections Commission.

The new capital's location has yet to be announced; the planning minister said his government is looking for a location on the eastern side of Indonesia.

Indonesia is considering a plan to move its capital away from sprawling megalopolis Jakarta, officials said Monday, but any jump to a new city could still be years away.

"Moving the capital requires thorough and detailed preparation", Widiodo said following the announcement, though a new location has yet to be decided.

Mr Brodjonegoro put the annual economic loss due to traffic congestion in Jakarta at 100 trillion rupiah ($10 billion).

Jakarta has a population of about 30 million in its greater metropolitan area.

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Prone to flooding and rapidly sinking because of uncontrolled ground water extraction, Jakarta is the archetypical Asian mega-city creaking under the weight of its dysfunction.

In making his decision, Mr Widodo had also taken into account the fact that almost 60 per cent of Indonesia's 260 million people live in Java and economic activities were concentrated there, Mr Brodjonegoro said.

During his re-election campaign, Widodo pledged to spread economic growth more evenly in the nation of 260 million.

The new site is yet to be named but state media reported that the sleepy town of Palangkaraya in Borneo had emerged as a frontrunner after Mr Widodo rejected two other plans that would keep the capital on the island of Java.

The planning minister did not estimate the cost of moving the capital but said the president had ordered the finance ministry to come up with a financing scheme that allowed participation of private investors.

The minister cited examples such as Brazil, Australia and Kazakhstan which all, at one point, moved their capital cities.

Authorities there had prepared 300,000 hectares of land in case it is chosen as a new government hub, Antara said.

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