What Happened: The Indonesian government will begin the estimated $33 billion process of moving its capital from Jakarta to the island of Borneo by 2024 to alleviate the current capital's congestion, flooding and pollution problems, according to President Joko "Jokowi" Widodo, Bloomberg reported Aug. 26.
Why It Matters: Although Indonesia's government has been discussing the issue of potentially moving its capital for the decades, Jokowi's announcement indicates a timeline for the relocation in the coming years. Besides offering some congestion and pollution relief to Jakarta, the move is also intended to mitigate inequality among Indonesia's regions and spur economic growth for Borneo's Kalimantan province.
Background: Jokowi's announcement comes as Indonesia's president enters a second term after securing a resounding electoral victory earlier this year. Before the relocation can proceed, however, Indonesia will be required to obtain the necessary funding for the move; the government only plans to fund 19 percent of the total.
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