Indonesia president proposes moving capital from Jakarta to Borneo

Indonesia’s President Joko Widodo on Friday proposed moving the country's capital from Jakarta to the island of Borneo, but left Indonesians guessing as to an exact location.

Widodo suggested a new capital in Kalimantan, on the Indonesian side of the island, which is shared with Malaysia and Brunei. The president made the proposal in a speech to parliament, a day before the country’s independence day holiday, Reuters reports.

Jakarta is one of the world’s most densely populated cities, home to more than 10 million people, three times that number when those living in surrounding towns are counted. The city is prone to floods and is sinking, due to subsidence.

Moving the capital to a safer, less congested location would cost up to $33 billion, according to planning minister Bambang Brodjonegoro.