Indonesia: Businesses Demand Assurance From Gov’t on Capital Move

  • The Indonesian Employers Association, or Apindo, has welcomed the government’s plan to move the Indonesian capital to East Kalimantan while retaining Jakarta as the country’s commercial and financial center, but they demand a formal assurance about the move as soon as possible.
  • “Businesses need a lawful assurance that the move is going to happen. The sooner we get it, the better it is for us. It will allow us to avoid wasting our resources,” Sany Iskandar, Apindo’s industrial area head, said during a discussion in Jakarta on 9 Oct 19.
  • “The development concept [for the new capital] should be clear and offer opportunities for the private sector to participate. We hope this process can start immediately to prevent speculations,” Sany said.
  • Separating the new administrative centre from the financial centre in Jakarta will benefit businesses, he said, as they will likely enjoy a relatively more peaceful environment free from political rallies.
  • Imron Bulkin, who heads the government preparation team for the capital move, said the government is preparing a bill for the development of the new capital city to be submitted to the House of Representatives by the end of 2019.
  • “We have been drafting the bill to be completed by the end of 2019,” Imron said. The government expects the bill to be passed in 2020. Construction on the new capital can only start after the bill becomes law.

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