New Capital City Project Continues Amid Covid-19 Pandemic

Summary

The government is continuing the capital city relocation project from Jakarta to East Kalimantan, even though it has reallocated most of the state budget to mitigate the Covid-19 pandemic. The National Development Planning Agency (Bappenas) is now holding a tender for the master plan project for capital city relocation.

According to the information on the website of the National Public Procurement Agency (LKPP), Bappenas offered a non-tender package called the Preparation of the Master Plan and Development Strategy for the State Capital or the IKN Master Plan, coded 6740119 and dated March 24, 2020. Unlike in the Pre-Masterplan preparation project, this time, Bappenas is using a direct appointment system and not the tender scheme. The Rp 85 billion-project contract will be ready in early May 2020.

Bappenas’ deputy for regional development, Rudy Soeprihadi Prawiradinata, said that the master plan project had to continue so that the capital city relocation would not get pushed back too far due to the Covid-19 pandemic. The agency hoped to process the budget allocation, analysis preparation, and master plan for capital city relocation at the same time without hampering the pandemic mitigation process.

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