Earlier this year, it was reported that Indonesia is looking to move its capital from Jakarta to a new city. East Kalimantan has been designated as the location for the new capital city. The area is in one location which partly belongs to the District of Panajam Paser Utara, partly part of the Regency of Kutai Kartanegara (Kukar).
President Jokowi has also set Sepaku Subdistrict, North Penajam Paser District, as a location for government complexes, including the presidential palace.
The Ministry of Energy and Mineral Resources (ESDM) estimates that the new capital city will need additional power plants with a total capacity of 1,555 MW. The need for electricity capacity is to ensure the reliability of supply with a 30 percent power reserve.