Emerging Cities
From The Report: Indonesia 2020
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Indonesia is characterised by substantial cultural diversity, comprising more than 17,000 islands and 267m people. Until the turn of the new millennium, economic development policies were strongly skewed towards Indonesia’s main island of Java and the capital Jakarta; a series of decentralisation policies have since aimed to spread out authority and investment across the country’s diverse regions. August 2019 saw the government announce that a new capital city would be built in the province of East Kalimantan on the island of Borneo. The new location will provide a more accessible economic and commercial centre for Indonesia’s eastern inhabitants, and is expected to attract major investment – transforming a region known for its agricultural and mining activities into the country’s administrative centre. This, alongside the emergence of a number of cities as increasingly key economic players, is opening up a wealth of business opportunities beyond Java. This chapter contains an interview with Isran Noor, Governor of East Kalimantan.

Articles from this Chapter

Overview

Inclusive growth: Efforts to decentralise economic prosperity and investment
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Indonesia is characterised by substantial cultural diversity. The archipelago is made up of more than 17,000 islands, of which 6000 are permanently inhabited by 267m people. Until the turn of the new millennium, centralisation was seen as the best way forward, and economic development policies were strongly skewed towards Indonesia’s main island of Java and the country’s capital Jakarta. After the resignation of President Suharto in 1998, however, successive administrations have implemented…

Analysis

Capital investment: Global interest rises in the development of a new capital city
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The relocation of the capital from Jakarta to East Kalimantan on Borneo looks set to create major investment opportunities if approved by Parliament. In August 2019 President Joko Widodo, better known as President Jokowi, stated that 20% of the estimated $33bn required for the development would be supplied by the state, leaving 80% open to state-owned enterprises (SOEs), public-private partnerships and private investors. Key Players SOEs will play a major role in the construction of the…

Interview

Stable foundations: Isran Noor, Governor of East Kalimantan, on encouraging sustainable growth in the province set to become the new capital
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Interview:Isran Noor How has the local government responded to the decision to move Indonesia’s capital city from Jakarta to East Kalimantan? ISRAN NOOR: The government of East Kalimantan welcomes the decision to select East Kalimantan as Indonesia’s new capital city. This is an honour and it will be a boon to the country by accelerating and ensuring equal development across all regions. We are working alongside all city governments to assist in the relocation plan. In 2020 we conducted…