JAKARTA, Indonesia

Indonesia has ensured that the new capital city project will continue this year and that construction on the state palace will start soon in order to meet the target completion date of 2024, said the planning minister.

Suharso Monoarfa told Anadolu Agency on Wednesday that the initial budget estimate for the construction of the new capital city was 466 trillion Indonesian rupiahs ($32.3 billion).

"This figure is still being adjusted to the strategy and stage of development based on the analysis in the Master Plan document for the State Capital," he stated.

He said the analysis includes a study on the most appropriate portion of the State Revenue and Expenditure Budget (APBN) with Public-Private Partnership (PPP) and the private sector to make sure the new capital city development is in synergy with other national priority programs.

Monoarfa added that non-budget funding sources are designed to attract investment opportunities and create new jobs that can support economic equality in eastern Indonesia.

The minister also assured that the construction of the new capital city would continue to protect local communities by ensuring that their settlements are well-managed, planned, and incorporated into the development.

Monoarfa stated that development principles and key performance indicators (KPI) have been prepared as a guide to ensure that development works are carried out in accordance with the predetermined plan.

"To maintain environmental balance, the new capital city follows the principle of ‘Designing According to Natural Conditions,’ with a 75% green space allocation," he said.

Monoarfa added that the government plans to introduce a criterion of 100% green space replacement for the construction of institutional, industrial, and residential buildings.

Speaking to Anadolu Agency last week, several environmental organizations, including Mining Advocacy Network (JATAM) and Indonesian Forum for Environment (WALHI), expressed their concerns on the new capital city development.

The groups said they were concerned about environmental impacts and the damages to ecosystems, and doubt that the government will be able to protect local communities.

*Writing by Rhany Chairunissa Rufinaldo with Anadolu Agency's Indonesian language services in Jakarta