Indonesia's parliament has approved a bill to relocate the nation's capital from Jakarta to a jungled area of Kalimantan on Borneo island, the planning minister said on Tuesday.
The new state capital law, which provides a legal framework for President Joko Widodo's ambitious $32 billion mega project, stipulates how development of the capital will be funded and governed.
"The new capital has a central function and is a symbol of the identity of the nation, as well as a new centre of economic gravity," planning minister, Suharso Monoarfa, told parliament after the bill was passed into law on Tuesday.The new centre will be called "Nusantara", a Javanese name for the Indonesian archipelago chosen by the president, Monoarfa announced on Monday.
Plans to relocate the government from Jakarta, a bustling megacity of 10 million people that suffers from chronic congestion, floods and air pollution, have been floated by multiple presidents, but none have made it this far.
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