Indonesia to move its capital from Jakarta to Borneo

Indonesia's President Joko Widodo has announced that the country's capital would be moved to an area in its East Kalimantan province on the island of Borneo, Report informs citing foreign media.

The new Indonesian capital has no name yet. It will locate in an area where the government owns some 180,000 hectares of land, near the cities of Balikpapan and Samarinda.

The president said the relocation of the capital to a 180,000-hectare (444,780-acre) site will take up a decade and cost as much as 466 trillion rupiah ($32.5 billion), of which 19% will come from the state budget and the rest will be funded by cooperation between the government and business entities and by direct investment by state-run companies and the private sector.

He said the studies determined that the best site is between two districts, North Penajam Paser and Kutai Kertanegara, an area that has minimal risk of disasters such as floods, earthquakes, tsunamis, forest fires, volcanic eruptions or landslides in the seismically active nation.