Indonesia floats idea of Garuda-shaped palace as it revives capital city move

GARUDA-SHAPED PALACE

The government also plans a ground breaking for a new state palace this year, with one of the proposed designs in the shape of a mythical Garuda bird - the state symbol - spreading its wings.

There have been concerns about the risk of corruption tied to the project, while environmentalists worry about damage to the environment in a forested area that is home to orangutans.

But more recently the criticism has been on the timing given how the pandemic has caused economic and health crises, straining Indonesia's fiscal position.

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Suharso said the cost for the government this year would be minimal with most investment coming from private developers, adding this should support the property sector and create jobs.

Bank Permata's economist Josua Pardede said for budget reasons it was better to delay the project to at least 2022.

"You have to also pay attention to business appetite in the middle of a pandemic for large, long-term projects," he said.

Paulus Totok Lusida of Realestat Indonesia, an industry group, said struggling developers would need time to digest the proposals and see evidence of economic recovery and more vaccinations.

Dicky Budiman, a researcher at Australia's Griffith University, warned logistical and supply challenges meant by July Indonesia may only be able to vaccinate 40 million people. ($1 = 14,450.0000 rupiah)