Minggu, 30 Agustus 2020

Commentary: Militaries, the surprising allies – when men in green fight for a greener world - CNA

MELBOURNE: Which organisations would you look to as allies in the fight against climate change?

Climate activist groups, foundations and even a smattering of corporates involved in sustainability might come to mind.

But here’s some real food for thought: How about militaries?

The ongoing fight against COVID-19 has made it seem like a lifetime ago that Defence Minister Dr Ng Eng Hen unveiled a slew of green measures that the Ministry of Defence (MINDEF) and the Singapore Armed Forces (SAF) will be adopting to do its bit for climate change in Parliament in March.

But these bold plans augur well for a green future for these men in green. The initiatives announced range from simple waste-reduction measures including recycling food waste into energy to larger, ambitious plans that seek to replace the SAF’s 400 administrative vehicles with hybrid and eventually electric models to reduce carbon emissions.

The Republic of Singapore Navy is also looking at hybrid propulsion for its future ships, which according to Dr Ng has the added bonus of improved energy efficiency in addition to reducing their carbon footprint.

READ: Commentary: Singapore ports and ships are turning the tide on climate change

LISTEN: How ready is Singapore for electric vehicles?

The Republic of Singapore Air Force (RSAF) is also doing its bit, with a newly-built hangar at Changi East Air Base for its Airbus A330 Multi-Role Tanker Transport set to be the first net-positive energy aircraft hangar in Singapore.

According to MINDEF, solar panels on the roof of the new hangar can generate up to 1.225 MWh of electricity per year, or 30 per cent more electricity than it consumes. The additional energy generated will then be directed to other buildings the air base to be used.

Other features of the hangar include the use of sustainable materials in its construction, a rainwater harvesting system, the use of natural ventilation and energy-efficient LED lighting.

The hangar, which was designed by the Defence Science and Technology Agency, has won the Building and Construction Authority’s Green Mark Platinum (Positive Energy) award for its green features.

saf mrtt hangar led lights
The hangar uses energy-efficient lighting. (Photo: Aqil Haziq Mahmud)

The hangar will be one of several such “green” buildings MINDEF has already in service, with more on the way. The new hangar at Changi East follows an earlier hangar at Paya Lebar, which won the Green Mark Gold Plus award in 2015.

This is the second highest tier of the award. One of the criteria for winning includes a requirement to achieve at least 25 per cent savings in utilities compared to a “non-green” equivalent.

LISTEN: Getting down to the big picture science of climate change

LISTEN: When it comes to climate change, why is CO2 public enemy number one?

JUST DOING THEIR PART FOR SINGAPORE

These initiatives unveiled by MINDEF are its contribution to a whole-of-government plan to go green. As Dr Ng said in his speech, the threat of climate change is some “which the SAF may not be primarily responsible, but must join in the efforts (to combat) for Singapore’s security and safety”.

Such efforts illustrate the fact the militaries do not exist in a vacuum, and will have to do their fair share of meeting national objectives.

Singapore has previously pledged to reduce its absolute carbon emission levels after 2030 and halve that by 2050.

READ: Commentary: Why Singapore’s new 'absolute' climate mitigation targets could be an absolute game changer

It is also worth noting Singapore’s carbon footprint is big for its size, with estimates that it contributes 0.11 per cent of global emissions despite having just 0.0005 per cent of the world’s land.

While it is hard to see how Singapore can reduce its dependence on heavy industries that contribute the majority of the nation’s greenhouse gases, including the oil and gas industry, there is no question Singapore sees the need to reduce its carbon footprint as a responsible global stakeholder, with everyone doing their bit.

Using renewable energy sources such as solar power would be a good place to start.

Given 95 per cent of Singapore’s electricity is generated by natural gas-fired powered stations, there is room to embrace the use of solar and other forms of renewable energy to power electrical needs, with new targets to increase installed solar capacity by more than seven times from current levels to reach 2 gigawatt-peak by 2030.

READ: Commentary: Singapore’s dreams of becoming a solar-powered nation have almost arrived

Singapore Solar Panels
Solar panels are seen here on the rooftop of an office building in Singapore. (File photo: AFP/Roslan Rahman)

But the SAF has a large land footprint too and knows it can do better with designing bases and camps. In addition to the RSAF’s green hangars, Dr Ng also revealed that MINDEF has commissioned net zero energy buildings at Kranji and Seletar Camps, and by the end of this financial year, the buildings in 12 SAF camps will be equipped with solar panels.

These initiatives will be a start to making a dent in Singapore’s carbon emissions, a whopping 52.5 million tonnes in 2017 alone.

READ: Commentary: Reaching net-zero emissions will be ‘very challenging’. But watch Singapore try anyway

GOING GREEN HAS DEFENCE UTILITY

For militaries, learning how to live “off the (electrical) grid” is a good thing. During times of conflict, national disaster, or even a cyberattack, access to the national electrical grid or fuel could be affected while the SAF must still perform its duties.

The American military learnt this during its time in Iraq and Afghanistan, when it found embracing the use of solar to power its sometimes-isolated bases reduced its dependence on diesel which reduced the risk of attack to road convoys delivering the fuel.

A similar conundrum could be faced by Singapore during an emergency. In 2018, Singapore imported 9.96 million tonnes of oil equivalent of natural gas, of which 71.4 per cent was piped in from Indonesia and Malaysia.

READ: Commentary: Forget bamboo straws. Let’s name the elephants in the room of Singapore’s climate debate

However, supply from the former is due to end in 2023, and the use of LNG brought in by ships is expected to increase in proportion to 50 per cent by the middle of this decade.

Given the well-known vulnerability of the sea lines of communications around Singapore, it is prudent to assume an uninterrupted supply of fuel such as LNG and petroleum products cannot be guaranteed in a crisis, and the SAF, like all Singaporeans, cannot assume that unfettered access to electricity or fuel in tough times. 

MORE MILITARIES GOING GREEN

The push to go green is not limited to Singapore’s military. Several military leaders have gone on record as saying the climate change is the biggest challenge their forces will face or a variation thereof, including the US and Australia, whose national governments have on occasion been susceptible to bouts of climate scepticism or outright denialism.

Australia wildfires
Australian firefighters are seen as they try to protect homes around Charmhaven, New South Wales, from wildfires. (Photo: Twitter@NSWRFS via AP)

Most of these concerns are driven by the calculation of the rising frequency and intensity of natural disasters armed forces have to respond to. 

Australia’s Chief of Defence Force General Angus Campbell noted in 2019 that Australia’s military capabilities could be stretched if it had to undertake more humanitarian relief efforts as a result of climate change causing more frequent and damaging natural disasters.

The Australian military deployed 3,000 personnel to support the relief effort following a cyclone in the north of the country earlier that year, double the number of troops it had in Afghanistan at the height of Australia’s combat deployment in support of coalition forces.

READ: Commentary: Rising temperatures, fires and floods highlight importance of understanding weather extremes

READ: Commentary: China struggles with ‘once-in-a-century’ floods that may be new normal

There is also no doubt that the sustainability of continuing a “business as usual” approach to the use of fossil fuels and accompanying carbon emissions is being questioned by militaries worldwide, with a realisation something has to change.

According to a 2017 report by the US Department of Defense, the US military nearly doubled its renewable power generation between 2011 and 2015, to 10,534 billion British thermal units, or enough to power about 286,000 average American homes.

The US military also nearly tripled the number of individual renewable energy programmes during this period to almost 1,400, most of these occurring on American military bases.

A good example of this is Fort Hood in Texas, the US military’s biggest base on American soil. 

The sprawling base reported in 2017 it had increased its use of renewable energy vis-à-vis fossil fuels, with 63,000 solar panels and off-base wind turbines providing almost half of its power needs, compared to just 23 per cent in 2015. The US Army estimates this will reap more than US$100 million (S$138.87 million) in savings over 30 years.

READ: Commentary: That low-carbon future for Singapore isn’t so far-fetched

In Asia, South Korea’s military is also doing the same thing with the aim of increasing its use of renewable energy sources to 25 per cent by 2030, which is higher than the government's goal of 20 percent for the country as a whole.

The renewable energy will come from photovoltaic panels in bases, military land and rooftops of other installations, while some barracks will be fitted with geothermal cooling and heating system.

There is also a continuing effort worldwide to experiment with the use of biofuels on military ships and aircraft, to find a right blend that is sustainable yet without negatively affecting the performance of the engines.

Exercise Forging Sabre multi-role tanker transport refuelling fighter jet
An RSAF A330 multi-role tanker transport refuelling an F-16 during Exercise Forging Sabre in US. (Photo: MINDEF)

As a whole, militaries tend to be one of the more significant contributors to emissions through burning of fossil fuels, yet are potentially some of the worst-affected by an interruption to supply.

As solar power becomes more affordable and battery storage technologies used to store power from renewable sources improve, the trend of militaries going green will only accelerate, which is a positive development to be welcomed.

Mike Yeo is the Asia reporter for US-based defence publication Defense News.

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2020-08-30 22:10:03Z
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New Chinese rules pose further threat to TikTok’s US survival - South China Morning Post

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  1. New Chinese rules pose further threat to TikTok’s US survival  South China Morning Post
  2. China curbs exports of some AI technologies, could affect TikTok sale in US  The Straits Times
  3. China's new tech export controls could give Beijing a say in TikTok sale  CNA
  4. China puts drones and laser tech on restricted export list  South China Morning Post
  5. TikTok Deal Is Complicated by New Rules From China Over Tech Exports  The New York Times
  6. View Full coverage on Google News

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2020-08-30 12:32:42Z
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Hong Kong health workers, activists urge boycott of mass COVID-19 testing - CNA

HONG KONG: A Hong Kong pro-democracy union of healthcare workers and several activists, including Joshua Wong, called on Sunday (Aug 30) for a boycott of the government's universal coronavirus testing plan, in which medical staff from mainland China are set to assist.

From Tuesday, a 60-strong mainland team is due to conduct tests in the first direct help from China's health officials for the city as it battles the pandemic.

But the effort comes at a sensitive time for the former British colony, as anxiety runs high over what many of its 7.5 million residents see as Beijing's efforts to rein in their freedoms, in particular a national security law imposed in June.

The government has also postponed September's legislative elections by a year, citing risks to public health and dealing a blow to the pro-democracy opposition camp, which had hoped for a historic majority win after overwhelming success in lower-level elections last year.

READ: Hong Kong researchers report first documented COVID-19 reinfection

The Hospital Authority Employees Alliance, formed during last year's protests with 20,000 members, said universal testing was not an efficient use of resources and urged focused tests instead.

"It is clear to see that the government has one and only one goal ... to use the pandemic to achieve their own political aims," its leader Winnie Yu told a joint news conference with activists.

"They shall do whatever they can to please the central government of China, even if it means placing politics above all things else."

Wong said a full closure of the border would be a better measure than the government plan, adding, "It's like having a pregnancy test without having birth control."

The city's Beijing-backed chief executive, Carrie Lam, has hit back at critics of the initiative, dismissing their attempt to "smear the central government".

Chinese state media have denounced the critics as ungrateful, while China’s Hong Kong Liaison Office in the financial hub has said in a statement it was "shocking" that people could question the plan.

READ: Hong Kong to ease some COVID-19 measures as new cases decline

It comes at a time when new daily infections have fallen substantially, to figures in the single digits or low double digits, from three digits during a surge a few weeks ago. The tally rose to 4,801 with 15 more cases reported on Sunday.

Police also dispersed a protest by dozens of activists in a shopping mall roughly a year since some of the most violent clashes in a metro station in train carriages, citing a COVID-19 precaution limiting gatherings to two.

BOOKMARK THIS: Our comprehensive coverage of the coronavirus outbreak and its developments

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2020-08-30 12:05:28Z
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Coronavirus: Even a plane wore a 'mask' when it landed at Changi Airport - The Straits Times

SINGAPORE - The blue mask is a common sight these days but on Thursday (Aug 27) morning, it was spotted on a Cargolux Airlines Boeing 747-8 at Changi Airport.

Flight CLX 7952 landed in Singapore "masked up", four months after mask-wearing was made compulsory for those here on April 14 to combat the spread of Covid-19.

The special livery covers the nose of the plane with straps highlighting a message appropriate to current times: "Not without my mask."

It is the first time a "masked" plane has landed in Changi, said Changi Airport Group.

The Luxembourg-based cargo airline had decided on a new paint job following a scheduled maintenance check in Taipei.

It made a stopover in Singapore at 4.20am on Aug 27 before heading to Luxembourg via Baku, Azerbaijan.

Luxembourg's Prime Minister Xavier Bettel and Deputy Prime Minister François Bausch were onsite to greet the plane and its crew when it landed in Luxembourg Airport on Aug 27 afternoon local time.

In a statement, Cargolux said that the plane's livery is meant to show that the airline "embraces the Luxembourg government's campaign to promote the use of face masks in the current environment".

The plane returned to Singapore on Aug 28 at about 9pm.

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2020-08-30 06:31:03Z
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India records world's highest single-day rise with more than 78700 new COVID-19 cases - CNA

NEW DELHI: India recorded the world's highest single-day rise of COVID-19 cases on Sunday (Aug 30) with 78,761 new infections.

The spike in new cases, the highest reported by any nation since the pandemic began, surpassed a Jul 17 figure of 77,638 in the United States according to an AFP tally. 

India, home to 1.3 billion people, is already the world's third-most infected nation with more than 3.5 million cases, behind the US and Brazil.

READ: Global coronavirus cases surpass 25 million

The spread of coronavirus disease (COVID-19) in Delhi
A rickshaw puller wearing a protective face mask waits for customers on a street, amidst the spread of COVID-19 in the old quarters of Delhi, India. (Photo: Reuters/Adnan Abidi)

Indian authorities on Saturday further eased coronavirus lockdown restrictions on even as cases and deaths surged across the country.

The government faces pressure to free up the economy as millions have lost jobs since nationwide restrictions were first imposed in March.

The Home Affairs Ministry said that gatherings of up to 100 people would be allowed with face masks and social distancing at cultural, entertainment, sports and political events from next month.

LISTEN: The COVID-19 vaccine will be the biggest product launch in history. Can we pull it off?

Metro train services will also be allowed to resume "in a graded manner" in major cities.

The coronavirus has badly hit mega cities such as Mumbai and New Delhi, but is now surging in smaller cities and rural areas.

The new government guidelines ordered schools and colleges to remain closed but students can meet teachers on a voluntary basis on school premises if needed.

The government has resisted a mass campaign by students to postpone entrance exams for medical and engineering colleges due to be taken by about two million students next month.

READ: Making, distributing COVID-19 vaccine in good time may depend on India's manufacturing might, a commentary

FILE PHOTO: Outbreak of coronavirus disease (COVID-19) in Ahmedabad
A healthcare worker takes a swab from a police officer for a rapid antigen test at a special testing center for Gujarat Police, in Ahmedabad, India, Aug 17, 2020. (Photo: Reuters/Amit Dave

Students say they fear catching the virus in exam halls across the country. Authorities say they are taking special measures for the exams.

The government also said individual states could not impose general lockdowns outside of areas that are considered 'containment zones' where clusters of cases have been reported. Several states have imposed tougher measures in recent weeks because of the rise in cases.

The main opposition Congress party has called for Prime Minister Narendra Modi's government to set out a firm plan to stop the spread of the pandemic.

BOOKMARK THIS: Our comprehensive coverage of the coronavirus outbreak and its developments

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2020-08-30 05:15:00Z
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Sabtu, 29 Agustus 2020

Japan's Suga to join race to succeed PM Abe: Reports - CNA

TOKYO: Japan's Chief Cabinet Secretary Yoshihide Suga will join the race to succeed his boss Shinzo Abe as prime minister, local media reported on Sunday (Aug 30), as the competition heats up to succeed Japan's longest-serving leader.

Suga, a longtime lieutenant of Abe's in a key supporting role, has denied interest in the top job but attracted attention with a series of interviews, to Reuters and other news organisations, in the days before Abe's abrupt resignation for health reasons.

A Suga government would extend the fiscal and monetary stimulus that defined Abe's nearly eight years in office.

READ: Japanese Prime Minister Abe resigns over health concerns

READ: Who could lead Japan after Shinzo Abe?

Abe's announcement on Friday, citing a worsening of a chronic illness, set the stage for a leadership election within his Liberal Democratic Party (LDP). The LDP president is virtually assured of being prime minister because of the party's majority in the lower house of parliament.

Suga decided to join the LDP race judging that he should play a leading role given expectations for his ability to manage crises, such as the COVID-19 pandemic and Japan's deepest postwar economic dive, Kyodo news agency said, citing an unnamed source.

Calls to Suga's parliamentary office seeking comment on Sunday went unanswered.

Suga would join such candidates as former foreign minister Fumio Kishida and former defence minister Shigeru Ishiba.

READ: Abenomics fails to deliver as Japan braces for post-Abe era

A self-made politician in a country of political dynasties, Suga was chosen by Abe in 2012 for the pivotal role of Chief Cabinet Secretary, acting as top government spokesman, coordinating policies and riding herd on bureaucrats.

"I'm thinking of running in the LDP leadership race. I'd like you to support me," Suga told LDP secretary-general Toshihiro Nikai in a secret meeting on Saturday, TV Tokyo reported.

It quoted Nikai as replying, "Please do your best," which it said was a sign of his backing for Suga.

"Everyone wants to be on the winning side, so if Nikai is supporting Suga, they will jump on the bandwagon," said Koichi Nakano, political science professor at Sophia University.

LDP heavyweights aim to hold a slimmed-down leadership contest around Sep 13 to 15, public broadcaster NHK said on Sunday.

Commentary: Will replacing Abe leave Japan in limbo?

Nikai and parliamentary affairs chief Hiroshi Moriyama agreed late on Saturday to move quickly to avoid a "political vacuum", NHK said, without citing any sources for the information.

Usually, a leadership vote is held by LDP members of parliament along with grassroots party members in a month-long process. But in the event of a sudden resignation, an extraordinary vote can be called with participants narrowed to MPs and representatives of the LDP local chapters.

The scaled-down version may disadvantage Ishiba, a longtime Abe critic who promotes boosting regional economies in Japan's depopulating hinterlands. He is popular with the public but less so among party MPs.

LDP factions will play a dominant role in the election, Sophia's Nakano said. There might be media criticism that this is not a real contest, which might give Ishiba a bump up, but "not enough to change the momentum", he said.

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2020-08-30 04:41:15Z
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New Indonesian capital one year on: Land demand cools amid COVID-19, but speculators still hover - CNA

JAKARTA: “Do you have land to sell?”  

That was the million-dollar question in Penajam Paser Utara and Kutai Kartanegara last year following President Joko Widodo's announcement that the country’s capital would move from megacity Jakarta to the underdeveloped districts in East Kalimantan province.

The plan to move the capital was deemed necessary as Jakarta, a crowded and polluted city of 10 million people, has for years been battling traffic congestion which costs US$7 billion in economic losses each year.

It is also one of the fastest-sinking cities on Earth with experts predicting that it could be submerged by 2050 if current rates continue.

Penajam Paser Utara and Kutai Kertanegara districts, on the other hand, are at minimal risk of natural disasters, the president said in his announcement and is geographically in the centre of the country where the government already owns about 180,000 hectares of land.

The government's announcement last August led to a spike in demand for land parcels in the new capital site. But with the COVID-19 pandemic and delays in development, the demand appears to have cooled for now. 

This being said, those interviewed by CNA noted that land around the capital site remains sought after and are seen as a sound investment for the future.

The COVID-19 pandemic has resulted in the government shifting its priorities, delaying the development of the 466 trillion rupiah (US$32 billion) project. 

Now, one year on, the new capital remains a plan on hold with the government asserting several times that it will still be developed when the time is right.

In this regard, land selling is not the talk of the town anymore. 

“Nobody is talking about land anymore, unlike last year when many people from out of town dined in my restaurant talking about it,” said Mr Eko, a restaurant owner in Penajam Paser Utara who like many Indonesians goes by one name.

When CNA met Mr Eko at his diner last year, he said that all his customers talked about every day was land prices.

Penajam Paser Utara
A sign welcoming visitors to the new capital of Indonesia has been put up at Penajam Paser Utara, East Kalimantan, in this photo taken in September 2019. (Photo: Kiki Siregar)

Mr Debi, a resident of oil city Balikapan about 80km east of Penajam Paser Utara, concurred.

He too witnessed a surge in the demand for land in his city last year, but said that the enthusiasm has abated for now.

INVESTORS REMAIN SANGUINE: MINISTER

Although there is currently no construction work in progress, Mr Suharso Monoarfa, the minister overseeing the new capital explained that the master plan is still being worked on.

“The detailed plan will follow, then we will include basic infrastructure works in cities that will support the future capital of the country, for example, Balikpapan, Samarinda,” the national development planning minister told CNA in a recent exclusive interview.

A highway has been constructed to connect Balikpapan with East Kalimantan provincial capital Samarinda.  

The National Development Planning Minister also revealed that investors are still keen in the new capital.

"There are still some investors, including domestic ones, who are still interested. And indeed they keep asking when it can start. 

"I think this is also important because, after COVID-19, the economic recovery will (focus on) investment destinations that promise high and fast capitalisation, one of them in Indonesia is the capital city project." 

Mr Monoarfa welcomed other countries to invest, especially fellow members of the Association of Southeast Asian Nations (ASEAN).

"In my opinion, because later it (the new capital) will also be a symbol of friendship in ASEAN, why should there be no legacy from ASEAN countries contributing to this capital city?"

Mr Monoarfa is hopeful that the new capital project can resume next year, once COVID-19 has been contained.

STRATEGIC ISLANDS NEAR EAST KALIMANTAN SOUGHT AFTER

A recent case of alleged illegal land sale involving the Malamber islands near the East Kalimantan province, which was reported by local media, suggests that there are still people who are eyeing land in the region despite the uncertainties in the relocation timeline.

The Malamber islands case caught the attention of the authorities after it was reported in June that a man allegedly sold the 6.4 ha island for 2 million rupiah to the regent of Penajam Paser Utara, who is also a businessman.

Inhabited by about five families, Malamber is part of the Balabalakang island chain which technically is in West Sulawesi province, but closer to Balikpapan Bay and the coast of East Kalimantan.

Malamber island
Malamber consists of Big Malamber island and Small Malamber island. (Photo courtesy of Ridwan Alimuddin)

According to the Constitution, island sales and purchases are illegal in Indonesia as they belong to the state. 

While the alleged seller has since clarified that he had sold the land on the island and not the island itself, the local police in West Sulawesi are still investigating the case.

The lawyer of Penajam Paser Utara’s regent dismissed claims about his client's involvement and told CNA the regent does not know the alleged seller.

Balikpapan Bay
Environmentalists are concerned that the capital's relocation to East Kalimantan will harm the Balikpapan Bay and its coastal communities. (Photo: Kiki Siregar)

Meanwhile, East Kalimantan coordinator of Mining Advocacy Network JATAM Pradarma Rupang, who has studied land ownership in large parts of East Kalimantan believed the Balabalakang island chain would be strategic if the new capital is developed.

“Its location which is near to the new capital makes it an important route, especially for logistics in central and eastern Indonesia, and it would make it also a transit place," Mr Rupang said.

READ: New Indonesian capital offers opportunities for development, but environmental pitfalls abound

The environmentalist claimed that the practice of buying and selling land, in general, is still prevalent in the area.

“It (the pandemic) did not stop a number of businessmen from outside East Kalimantan to conduct land surveys in a number of villages in the district of Penajam Paser Utara and Balikpapan city,” Mr Rupang said. 

LAND OWNERS CONTINUE TO BE APPROACHED

Mr Sikbukdin, head of local tribe Paser Balik in Penajam Pasar Utara concurred.

He said that he still receives calls from people who are interested in buying his land.

“Yes, there are still a lot of people but it is unclear who they are. They (claim to be) speaking on behalf of the National Development Planning Agency,” Mr Sibukdin said.

“I replied saying the new capital is still unclear, it is impossible the National Development Planning Agency is looking for land on its own,” said the 57-year-old who does not want to sell his land. 

READ: New Indonesia capital - Indigenous tribes fear further marginalisation

The exact location of the new capital has yet to be revealed but many are betting on the sub-districts of Sepaku and Samboja, which are at the border of Penajam Paser Utara and Kutai Kartanegara.

The 57-year-old tribe head owns land in Sepaku, Penajam Paser Utara.

Paser Balik House
The neighbourhood of indigenous Paser Balik tribe in Penajam Paser Utara. (Photo: Kiki Siregar)

Similarly, another Penajam Paser Utara resident also revealed that he still receives many requests from interested land buyers.

Farmer Hamzah, who regularly acts as a middleman between land seller and buyer noted that land price has not decreased despite the pandemic especially in sub-district Sepaku as land availability is scarce.

“People just positively think that the new capital project will start next year,” he added.

READ: How about Jokograd? Indonesians suggest names for new capital

Originally, the government planned to begin the construction of the new capital this year on an initial 40,000 ha plot of land and transfer the central administration functions to the new capital site by 2024.

PROPERTY STILL A SOUND INVESTMENT

Over in oil city Balikpapan, Mr Yoga Gunawan, the general manager of superblock Borneo Bay City, which comprises malls, offices, a hotel and apartments, said sales are relatively stable.

When the president announced the relocation of the capital at the end of August last year, Borneo Bay City acted quickly and immediately published a full-page advertisement of its property in a national newspaper the following day.

Borneo Bay City
Property developer Agung Podomoro Land's Borneo Bay City superblock in Balikpapan. (Photo: Kiki Siregar)

Even though there has reportedly been a decrease of 15 per cent in property sales in Balikpapan for the second quarter of 2020, Mr Gunawan is optimistic that the property remains a sound investment.

“According to the latest information, the new capital will still be developed … The people of Balikpapan are still optimistic about the relocation of the new capital,” he told CNA.

Mr Ali Tranghanda, CEO of property consultant and advisor Indonesia Property Watch, added that demand for land and property in the area where the new capital is thought to be has slowed down, but the potential is still there.

“The price of land is still stable with an overall correction of about 1 per cent to 3 per cent,” he told CNA.

READ: Trading places - Countries that moved their capitals

He also asserted that in the long term, the potential of the market is still very high.

“The plan (to relocate the capital) still exists, and there are parties which are sceptical about the big budget needed for the relocation.

“However, the situation is not a result of technical things but due to the pandemic.”

Despite the uncertainty, Mr Debi, the Balikpapan resident, is still hopeful the new capital will be realised soon.

“If the new capital is in East Kalimantan it will boost the economy.”

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2020-08-29 22:02:05Z
CBMibGh0dHBzOi8vd3d3LmNoYW5uZWxuZXdzYXNpYS5jb20vbmV3cy9hc2lhL2luZG9uZXNpYS1uZXctY2FwaXRhbC1vbmUteWVhci1vbi1sYW5kLWRlbWFuZC1zcGVjdWxhdG9ycy0xMzA0NjU1NNIBAA