Indonesia's decision to relocate its capital may face environmental road-blocks and will require a substantial amount of infrastructure investment, said analysts from Fitch Solutions.INDONESIA'S decision to relocate its capital may face environmental road-blocks and will require a substantial amount of infrastructure investment, said analysts from Fitch Solutions.
As the new capital sits on 180,000 hectares of government-owned land, analysts said that it would be a positive point for the implementation of future infrastructure and development projects as land acquisition issues will be reduced.Analysts also anticipate opportunities in Balikpapan and Samarinda as well, due to spillover effects of the new capital on the development of these two cities.
That being said, analysts foresee that the proposed timeline will probably be stretched as the implementation of less environmentally friendly projects are likely to face strong political opposition and resistance from local communities.
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