McKinsey tasked with assessing Indonesia’s new capital project

Mckinsey Tasked With Assessing Indonesia’s New Capital Project

The Indonesian government has commissioned the local branch of US management consulting firm McKinsey & Company to conduct a feasibility study into the relocation of the country’s capital from Jakarta to Borneo island, according to planning ministry official cited by Reuters.

McKinsey beat out rivals Roland Berger and Boston Coonsulting for the three-month project – which was tendered at $1.77 million –, as well as 100 other candidates.

The country’s President Joko Widodo revealed the location for the new capital at a 3,000-hectare parcel of land in East Kalimantan province in August this year, triggering numerous questions including how the plan would be financed and what environmental impact it would have. The government estimates it will cost $33 billion to move the capital and build government offices and housing for approximately 1.5 million civil servants.

McKinsey Indonesia will take on the government’s initial studies on issues including the social, cultural, environmental and economic impact, said Rudy Soeprihadi Prawiradinata, deputy for regional development at Indonesia’s Planning Ministry. In addition, McKinsey has been tasked with examining the required funding. Previously, the finance ministry was ordered to come up with a scheme to allow private investment.

Earlier, Indonesia’s minister for national development planning, Bambang Brodjonegoro, stated that one of the main points of the prior studies was to determine the business models to develop the new capital.

“We want to diversify. We want to create new sources of growth. And the motto of the city will be smart, green and beautiful,” he said.



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The Indonesian government has commissioned the local branch of US management consulting firm McKinsey & Company to conduct a feasibility study into the relocation of the country’s capital from Jakarta to Borneo island, according to planning ministry official cited by Reuters. McKinsey beat out rivals Roland Berger and Boston Coonsulting for the three-month project – which was tendered at $1.77 million –, as well as 100 other candidates. The country’s President Joko Widodo revealed the location for the new capital at a 3,000-hectare parcel of land in East Kalimantan province in August this year, triggering numerous questions including how the plan would...

Mckinsey Tasked With Assessing Indonesia’s New Capital Project

The Indonesian government has commissioned the local branch of US management consulting firm McKinsey & Company to conduct a feasibility study into the relocation of the country’s capital from Jakarta to Borneo island, according to planning ministry official cited by Reuters.

McKinsey beat out rivals Roland Berger and Boston Coonsulting for the three-month project – which was tendered at $1.77 million –, as well as 100 other candidates.

The country’s President Joko Widodo revealed the location for the new capital at a 3,000-hectare parcel of land in East Kalimantan province in August this year, triggering numerous questions including how the plan would be financed and what environmental impact it would have. The government estimates it will cost $33 billion to move the capital and build government offices and housing for approximately 1.5 million civil servants.

McKinsey Indonesia will take on the government’s initial studies on issues including the social, cultural, environmental and economic impact, said Rudy Soeprihadi Prawiradinata, deputy for regional development at Indonesia’s Planning Ministry. In addition, McKinsey has been tasked with examining the required funding. Previously, the finance ministry was ordered to come up with a scheme to allow private investment.

Earlier, Indonesia’s minister for national development planning, Bambang Brodjonegoro, stated that one of the main points of the prior studies was to determine the business models to develop the new capital.

“We want to diversify. We want to create new sources of growth. And the motto of the city will be smart, green and beautiful,” he said.



Support ASEAN news

Investvine has been a consistent voice in ASEAN news for more than a decade. From breaking news to exclusive interviews with key ASEAN leaders, we have brought you factual and engaging reports – the stories that matter, free of charge.

Like many news organisations, we are striving to survive in an age of reduced advertising and biased journalism. Our mission is to rise above today’s challenges and chart tomorrow’s world with clear, dependable reporting.

Support us now with a donation of your choosing. Your contribution will help us shine a light on important ASEAN stories, reach more people and lift the manifold voices of this dynamic, influential region.

 

 

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