Indonesia’s New Capital On Hold Due To COVID-19 Impact

Photo by: Get About Asia

Indonesia’s multi-billion dollar plan to develop a new capital city on the island of Borneo have been formally put on hold as a result of the economic impact of COVID-19.

Indonesia’s Minister for National Development Planning, Suharso Monoarfa, told Reuters on 19 August that “We putting as our number one priority the recovery of the economy and overcoming the pandemic. When the situation improves, only then will we decide what we will do.”

The plan to move the capital Jakarta was expected to start in 2021 and was due to increased overcrowding, traffic congestion and flooding from poor urban planning.

Delays until 2022 or 2023 are now likely, including the construction of a new state palace, as well as upgrades of airports, harbours and access roads.

With Indonesia’s GDP contracting by 5.3% in Q2 2020, embarking on a project estimated to cost between US$33bn and US$48bn in the current economic climate is not seen as a priority.

- Video Advertisement -

Related Post

China’s Sailun Group Plans Expansion of Rubber Processing Investment in Cambodia

In a significant move to enhance its presence in Southeast Asia, Chinese tyre manufacturer Sailun Group has announced plans to increase its investment in rubber processing in Cambodia, where it currently operates a tyre factory in Svay Rieng province. The announcement occurred during a recent meeting between Yuan Zhongxue, Honorary Chairman of Sailun Group, and […]

Chinese Firm Expands Investment with New Cashew Processing Plant in Cambodia

Shandong (Cambodia) Economic and Technological Development Zone, a major Chinese agricultural firm, has announced a substantial capital increase to establish a new cashew processing plant in Cambodia, further advancing its agricultural production footprint in the country. This decision was revealed during a meeting on 6 November 2024 between Cambodian PM HE Hun Manet and Mr. […]

Techo Int’l Airport Nears Completion at Over 90%, Already Costs USD 1.3 Billion

The Techo International Airport project has surpassed 90% completion as of early November 2024, with construction costs exceeding USD 1.3 billion. This milestone was announced by HE Sinn Chansery Vutha, Secretary of State and Spokesman for the Secretariat of State for Civil Aviation, on 6 November 2024. HE confirmed that major construction will conclude by […]

ADB Commits USD 400 Million Large-Scale Financing for Clean Water and Sanitation in Cambodia by 2025

The Asian Development Bank (ADB) has pledged a transformative USD 400 million Large-Scale Financing (MFF) project to advance clean water and sanitation infrastructure across Cambodia, targeting approval by the end of 2025. This announcement follows the success of an ongoing USD 119 million Provincial Water Supply and Sanitation Project currently active in the provinces of […]

China’s Sailun Group to Launch $110 Million SEZ in Kampot Province

Chinese tyre manufacturing giant Sailun Group has announced plans to develop an industrial park named the “Cambodia Kampot Special Economic Zone Project” (Kampot SEZ) in Cambodia, backed by an impressive $110 million investment. The new venture will be managed by a wholly-owned subsidiary, Kampot Bay Investment Co., Ltd., established specifically to implement the Kampot SEZ […]

Cambodia’s Construction Investments Struggle to Recover as 2024 Sees Significant Drop

Cambodia’s construction sector continues to face a challenging period, with approved investment projects in 2024 falling to about 2,190, valued at under $4 billion, a stark contrast to the nearly 4,841 projects worth approximately $12 billion in 2020. The latest report from the Ministry of Land Management and Urban Planning, presented by CBRE Research on […]