Indonesia is relocating its national capital to a new city called Nusantara, located in East Kalimantan on the island of Borneo. The decision, announced in 2019 by President Joko Widodo, aims to address significant challenges faced by Jakarta, the current capital, and to promote more balanced development across the country.
Jakarta, situated on the island of Java, is one of the most populous and congested cities in the world. It faces several critical issues:
Environmental Challenges: Jakarta is sinking due to excessive groundwater extraction, and much of the city lies below sea level, making it highly susceptible to flooding.
Overpopulation: With over 10 million residents in the city proper and over 30 million in the metropolitan area, Jakarta struggles with overcrowding.
Infrastructure Strain: Traffic congestion and pollution are persistent problems.
By relocating the capital, the government aims to ease the pressure on Jakarta while promoting development in other parts of the country.
Nusantara, meaning “archipelago,” has been envisioned as a modern, sustainable, and technologically advanced city designed to meet the needs of Indonesia’s future. The city will span approximately 256,000 hectares, of which 56,000 will form the core urban area.
Key features include:
Sustainability: Renewable energy sources are expected to power much of the city. Green spaces and pedestrian-friendly zones will be prioritised to reduce environmental impact. Urban planning will integrate the city with Borneo’s rainforest, preserving biodiversity and minimising deforestation.
Infrastructure and Buildings: The city will house Indonesia’s main government offices, including:
A new presidential palace.
Complexes for the legislative and judicial branches.
Residences for government officials and diplomats.
Public facilities, such as hospitals, schools, and universities, will support the city’s population.
An advanced transportation system, including electric buses and possibly autonomous vehicles, is being planned.
Population and Technological Advancements: Initially, Nusantara is expected to accommodate about 1.5 million residents, including government employees and their families. The city will feature smart city infrastructure, such as integrated public services, high-speed internet, and systems for managing energy, waste, and water usage.
Economic Opportunities: Nusantara is positioned to drive regional economic growth, attracting investment and creating jobs in East Kalimantan and surrounding areas.
The total estimated cost of Nusantara is over $30 billion. The government has adopted a mixed funding approach:
State Budget (20%): Covers initial infrastructure and government facilities.
Private Sector Investment (80%): Focuses on housing, commercial developments, and other urban infrastructure.
Public-Private Partnerships (PPPs): Used for projects like renewable energy and transportation systems.
Foreign Investments: Countries such as Japan, South Korea, and the UAE have shown interest in contributing.
Land Sales and Development Rights: Investors purchasing land in Nusantara are granted development rights for residential and commercial purposes.
Despite this multifaceted approach, challenges remain, including slower-than-expected private sector interest, environmental concerns, and land disputes.
Construction began in 2022, and the government aims to relocate some administrative functions by 2024. However, reports indicate that infrastructure development is behind schedule. Key milestones, such as the Independence Day celebration in Nusantara in August 2024, have been used to showcase progress and maintain momentum.
Similar Examples of Relocated Capitals
Several countries have undertaken the ambitious task of relocating their capitals to address issues such as overcrowding, uneven development, or environmental concerns. Notable examples include:
Nigeria: Abuja replaced Lagos as the capital in 1991 to manage overpopulation and ensure a more central geographic location.
Kazakhstan: Astana (now Nur-Sultan) became the capital in 1997 to encourage development in the northern part of the country.
Myanmar: Naypyidaw was inaugurated in 2006 as the new capital, although it remains underpopulated and has faced criticism for being isolated.
Egypt: The New Administrative Capital (NAC), currently under construction 45 kilometres east of Cairo, aims to alleviate overcrowding in Cairo. It features plans for government ministries, a presidential palace, and Africa’s tallest tower, along with infrastructure to accommodate an estimated 6.5 million residents.
These examples highlight both, the opportunities and challenges of relocating a national capital, offering lessons that Indonesia can consider in developing Nusantara.
Nusantara represents an ambitious effort to address Indonesia’s urban challenges while fostering sustainable development. However, its success depends on overcoming funding, environmental, and logistical hurdles. As construction progresses, Nusantara’s development will be closely watched as a potential model for urban innovation and resilience.
(The author is a foreign affairs expert. Views personal.)
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