Finance Minister Sri Mulyani announced that Indonesia would halt its mega investment project for capital relocation this year as the country uses the funds to fight against coronavirus pandemic.
According to the original project timeline, President Jokowi was about to ask for parliamentary approval for the project funding. However, as coronavirus hits the country, the project has to wait.
The project to relocate Indonesia’s capital from Jakarta, in Java, to East Kalimantan is originally supposed to finish by 2024. The absence of funding this year might make the project last longer.
That said, the funding might resume in 2021. However, there is also a possibility that the government has to also use next year’s funding to curb COVID-19 impact.
“I have asked the president whether we want to allocate some funds in the 2021 budget and he said judging from the current situation, we must remain careful,” the minister explained.
The relocation project is a mega investment worth of roughly US$33 billion. While the funding is still waiting for parliamentary approval, the government already allocated some funds for it this year.
Also Read: Unemployment Possibly Rises as Coronavirus Strikes Indonesia
Indonesia and the Attempt to Curb Coronavirus Outbreak
Indonesia currently confirms more than 8000 coronavirus cases in the country. As the figure is drastically escalating, the country has regulated policies to curb its transmissions.
To support its social distancing programs, the government has approved large-scale social restrictions in several red zones in the country. The program strictly limits public activities in the country, forcing people to stay at home for approximately 14 days.
The preceding physical distancing programs have indicated that human activities in residential areas greatly increase according to Google. Meanwhile, activities at other areas such as parks, workplace, and recreation show a decline.
Also, Indonesia bans exodus during its biggest approaching Islamic holiday in May. Normally, Indonesians visit their hometown and relatives during the holiday, but this year might seem to be very different.
Also Read: Indonesia Reports the Largest Daily Rise of Coronavirus