In 2019, during his annual state of the union address at the parliament, President Joko Widodo announced a plan to relocate the capital to Kalimantan on the island of Borneo. As part of the plan, part of Kutai Kartanegara Regency and Penajam North Paser Regency in East Kalimantan will be carved out to create a new province-level planned city, and the capital will be relocated to a more central location within Indonesia. The plan is part of a strategy to reduce developmental inequality between Java and other islands in the Indonesian archipelago and to reduce Jakarta's burden as Indonesia's primary hub. In August 2019, the government announced that while the capital will be moved, $40 billion will be spent on saving Jakarta from sinking in the next decade.