Indonesian President Joko Widodo announced on the 26th that the Indonesian government will officially launch the capital - relocation plan. The new capital will be located in East Kalimantan, Borneo, about 1,400 kilometers away from Jakarta.
According to relevant data statistics, about 40% of Jakarta is below sea level, making the city highly vulnerable to climate disasters such as rainstorms and floods. In addition, excessive groundwater extraction and urban construction also exacerbate land subsidence. By 2050, some areas of Jakarta may be completely submerged.
The Indonesian government and officials have stated that building the new capital will cost 466 trillion Indonesian rupiah (approximately 234.4 billion yuan). It is expected that the relocation of the capital will be carried out in phases starting from 2024, and the whole process may take up to 10 years.
At a time when the infrastructure of this new city is in urgent need of development, local real estate developers and construction companies in East Kalimantan are eager to take action. According to media reports on August 29th, the Indonesian state-owned construction company PT. Wijaya Karya said that it will seek foreign partners to jointly finance and develop the infrastructure of the new city. In the eyes of the outside world, it is highly likely that Indonesian infrastructure enterprises will seek cooperation with Chinese enterprises. There are signs in many aspects.
According to a report by Reference News on August 31st last year, the Indonesian government suggested that Chinese investors participate in infrastructure projects with a total amount of over 13.2 billion US dollars and indicated that the government will guarantee the activities of foreign companies in the country.
In response to this, Bian Yongzu, a researcher at the Chongyang Institute for Financial Studies of Renmin University of China, said that Indonesia has always maintained good political relations with China, which is also a very important factor. In East Asia and even globally, China's future prospects are certain, such as economic growth, social stability, etc. In commercial activities, everyone is willing to cooperate with reliable business partners. Moreover, the characteristics of infrastructure construction are large investment scale and long construction period, which require a stable and reliable partner even more. Therefore, for Indonesia, China is undoubtedly the most suitable partner.
It is worth mentioning that China is Indonesia's largest trading partner. In the first four months of this year, the bilateral trade volume between China and Indonesia reached $21.64 billion.
In December last year, there was news that Indonesia planned to offer new projects worth $60 billion to Chinese investors. And in April this year, Indonesia proposed about 30 engineering projects to China again, with a total value of $91 billion. These include industrial parks and a $6 billion high-speed rail project connecting Jakarta and Bandung. It can be seen that Indonesia has extended the "olive branch" to China many times, with the total value of the projects reaching hundreds of billions of dollars, showing its eagerness to cooperate with China.
In addition, Indonesia is an important country along the "Belt and Road" and also a huge market with a population of 250 million. As the largest economy in Southeast Asia, the Indonesian market can be regarded as a holy land of opportunities. The relocation of the Indonesian capital this time will cost a huge amount of money and last for a long period, which will also bring huge opportunities for Chinese foreign trade enterprises.
Therefore, the relocation of the Indonesian capital will be beneficial to Chinese stone and building materials enterprises for a relatively long period. Based on the friendly relations and trade exchanges between the two countries, Chinese stone enterprises are expected to embrace great market opportunities.
