Indonesian Minister of Agriculture and Land Planning Sofyan Djalil was cited by local media as saying on August 22 that the country's new capital would be built in East Kalimantan province on Borneo island.
However, the minister did not unveil the exact site where the new capital city will be located.
Sofyan's remarks came after Indonesian President Joko Widodo last week formally proposed to parliament moving the capital from Jakarta.
The government has 3,000-hectare (7,413 acres) of land in the province for the first stage of development, Djalil told media.
Indonesia's new capital would be designed as a sustainable smart city, which has an efficient public transport network as well as green electricity and water supply systems.
According to local media, Bukit Soeharto area or Samboja town may be chosen as the new administrative centre.
Construction of the new capital city was estimated to require some 33 billion USD, including the building of new government offices and accommodations for about 1.5 million civil servants.
The National Development Planning Agency (Bappenas) said the relocation plan may begin in 2024.
Jakarta is the largest city of Indonesia with a 9.6 million population, but its urban area accommodates up to nearly 30 million people. Traffic congestion is costing its economy 7.04 billion USD each year. It is also prone to flooding due to low-lying location.
The metropolitan region is sinking up to 18cm per year. Its road coverage is much lower than that of other big cities, creating a near-permanent traffic jam.
Source: China ASEAN Business Council