REPUBLIKA.CO.ID, JAKARTA -- Governor of Jakarta Anies Baswedan said the relocation of the capital city to East Kalimantan would bring about a positive impact to the improvement of the welfare and health of the Jakartans, as the city will grow as the center of business.

"A city will grow as an economic center through the market mechanism. This has happened (in Jakarta). Hence, business networking will grow here," Baswedan said here on Thursday.

The development of business networking, he continued, will surely encourage development, which in the end, will provide more jobs for people. As a result, Jakartans can improve their welfare and enjoy better health services, Baswedan remarked.

According to Baswedan, as the center of economic activity, Jakarta will continue its urban regeneration program worth Rp 571 trillion. "Transportation, infrastructure, city management and human resources have become our focus, including the restoration of areas undergoing a slump," he said.

President Joko Widodo announced that the new capital city would be located in East Kalimantan, with parts in North Penajam Paser District and parts in Kutai Kertanegara District. The government has allocated Rp 466 trillion for the relocation of the capital city, of which some 19 percent will be sourced from the state budget under the asset management partnership scheme. The remaining 81 percent of the fund will be provided under the Public Private Partnership scheme and the direct investment of state and private firms.

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