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Indonesia to move capital out of Jakarta to jump-start economy

Government eyes alleviating pain of serious traffic jams with relocation off Java

Jakarta's Welcome Statue fountain at night. The capital and its surrounding cities are home to roughly 10% of Indonesia's population.   © Reuters

JAKARTA -- Indonesia's cabinet has decided to relocate the capital, moving the government out of Jakarta as President Joko Widodo looks to spur economic development in neglected areas of the populous archipelago nation.

The shift will take five to 10 years, said Bambang Brodjonegoro, the national development planning minister, who disclosed the decision to reporters on Monday. Among the options under consideration, he said that a development plan that accounts for 1.5 million residents would cost an estimated 466 trillion rupiah ($33 billion).

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