Indonesian authorities put capita; relocation on hold

The government of Indonesia paused a mega project to relocate its capital city, as the country shifts focus on spending on containing the coronavirus outbreak, Report says, citing TASS.

According to Finance Minister Sri Mulyani Indrawati, the public works ministry, which is responsible for the project, has reallocated most of its spending, including the portion allocated for infrastructure projects, for the Covid-19 outbreak response. They have shifted their budget to upgrade hospitals, including expenses related to the new capital city,

"I've asked the President whether we want to allocate some funds in the 2021 budget, and he said, judging from the current situation, we must remain careful."

"But if the project is going to be supportive for economic recovery and it sparks confidence, then why not?" she added.

The Indonesian leader last August announced that the new capital should appear in the South-Eastern part of the island of Kalimantan by about 2024. The works are to begin next year, the project is estimated at 33 billion US dollars.