How can this influence land prices in Jakarta?
Based on Indonesia’s Planning Minister Bambang Brodjonegoro, the building of the new capital city could commence from the year 2021, together with the funding reaching a whopping 466 trillion Rupiah (roughly S$45.2 billion).
In 2024, an estimated 180,000 civil servants, together with thousands of police and military employees, are expected to relocate into the new funding.
It’s also among the most congested and in addition to that, the city is sinking.
In accordance with Jokowi, Jakarta and Java could no more bear their burdens, which might only be cumbersome as time passes. Jakarta is much quicker than a number of other metropolises, and is more prone to flooding and earthquakes.
By comparison, East Kalimantan is mineral-rich and is currently home to just about 3.5 million people.
Beyond ensuring sustainability, relocation programs will also be targeted at decreasing inequality throughout the nation and improving expansion over the Kalimantan province.
The scramble to get a bet of the new funding
The relocation strategy has contributed to increased land costs in the East Kalimantan region, prompting some issues that costs could soar from control.
The explosion is driven by the frenzied purchasing amongst property developers who’ve been snapping up property around the new capital to leverage on its own growth.
The business representative body — The Organization of Municipal Real Estate Businesses — is calling for President Jokowi to take action to rein in people attempting to profiteer in the slumping demand. The association’s chairman, Soelaeman Soemawinata stated the authorities must secure land and sell it to private contractors for a reasonable price.
As per a Bloomberg file, it recently promoted its residential and business job from Balikpapan as a 20-minute drive into the new capital city, stating that farmers were entitled to purchase.
Meanwhile, the PT PP Properti stated it was seeking to grow roughly 500 hectares in East Kalimantan.
What exactly does this imply for land costs in Jakarta?
Many are wondering how the projected move could affect land prices in town. From the long haul, some market observers believe that the movement would really increase Jakarta property rates. Here’s the reason why.
Jakarta will continue being the financial heart of Indonesia.
Some compare town to New York and Mumbai, that aren’t capital cities, but would be the most costly cities in their own countries because of their economic hub standing. Going by this contrast, a few are convinced that Jakarta will follow a similar course, as political or government offices will proceed.
The Capital is shifting, but Jakarta isn’t being abandoned.
New infrastructure like a new MRT stage and LRT continues to be proposed, together with Jokowi recently announcing a US$70 billion (S$95.56 billion) toll-road spending strategy for the nation. The advancement in infrastructure is expected to cause a rise in housing requirement in addition to property costs in time to come.
Paradoxically, Jakarta could ever become more livable
Additionally, the movement will decrease the city’s load quite appreciably. This attention on sustainability is forecast to boost living standards and make the city a much comfortable home for future generations.
It’s for all these facets that Jakarta will continue being the lively city as it is now, and keep to provide prime opportunities for work and for leisure — without the capital city status.