Indonesia ViewPoint - Relocation of Capital
On July 2, 2017, Indonesian National Development Planning (Bappenas) Minister Bambang Brodjonegoro announced that the government had reached a decision to relocate the capital away from Jakarta and that preparations would begin in earnest in 2018.
Bambang stated that Bappenas would complete a feasibility study of potential locations by the end of this year and that it would take three to four years to construct basic infrastructure and government buildings at the location of the new capital, which has yet to be announced.
The relocation of the capital city from Jakarta has been mooted for several decades and, if implemented, will a far reaching impact on the real estate sector, both in Jakarta and in the location of the new capital.
This ViewPoint by CBRE Research discusses the factors influencing the decision to move the capital; identifies potential locations under consideration; and explains the opportunities the relocation will create for real estate occupiers and investors.