Why Indonesia Needs a New Capital: The Case for Moving from Jakarta to Nusantara

Indonesia, the world's fourth-most populous country, is embarking on one of the most ambitious infrastructure projects in its history: relocating its capital from Jakarta to a newly planned city called Nusantara on the island of Borneo. This monumental decision reflects a range of economic, environmental, and geopolitical considerations that have driven the nation’s leadership to take such a bold step. Here’s why Indonesia needs a new capital.

1. Jakarta’s Overpopulation and Congestion

Jakarta, the current capital, is home to over 10 million people, with its greater metropolitan area hosting more than 30 million. This extreme population density has led to severe congestion, making daily commutes for residents a nightmare. Jakarta regularly tops lists of the world’s most congested cities, where traffic jams can last for hours, leading to economic inefficiency and a significant loss of productivity.

The city's infrastructure struggles to support its massive population, with roads, public transportation, and utilities often stretched to their limits. Relocating the capital is seen as a way to alleviate some of this pressure on Jakarta, allowing the city to be revitalized and better managed.

2. Environmental Challenges: Sinking and Flooding

Jakarta faces a critical environmental threat: it is sinking at an alarming rate. Parts of the city are subsiding by up to 25 centimeters (10 inches) per year, a phenomenon caused largely by the over-extraction of groundwater. This sinking is compounded by rising sea levels due to climate change, making Jakarta one of the most flood-prone cities in the world.

Floods are a recurring problem in Jakarta, causing widespread damage to homes, businesses, and infrastructure. The city’s vulnerability to natural disasters is a major reason why a new, safer location is necessary. The new capital, Nusantara, will be situated in an area less prone to these environmental hazards, offering a more secure future for government operations.

3. Decentralization and Economic Equity

Indonesia is a vast archipelago with over 17,000 islands, and Jakarta’s position on the island of Java has led to a significant concentration of political and economic power there. Java accounts for more than half of the country’s GDP and population, creating a regional imbalance that has long been a source of concern.

By relocating the capital to Borneo, the government aims to promote more balanced economic development across the country. Nusantara’s location in Kalimantan, the Indonesian portion of Borneo, could help spur growth in the underdeveloped regions of eastern Indonesia. This move aligns with broader goals of decentralization and reducing the economic disparity between Java and the rest of the country.

4. Reducing the Strain on Jakarta’s Resources

Jakarta’s infrastructure is not only overwhelmed by its population but also by the demands of being the political and administrative center of the nation. Government offices, foreign embassies, and international organizations are all concentrated in the city, putting additional strain on its resources.

By moving the capital to Nusantara, the government intends to relieve Jakarta of its administrative burdens, allowing it to focus on being Indonesia’s economic and cultural hub. This shift could lead to improved public services and infrastructure in Jakarta, benefiting its residents and the economy as a whole.

5. Geopolitical and Strategic Considerations

Jakarta’s location on the northwest coast of Java places it at a relatively vulnerable position, both environmentally and geopolitically. Moving the capital to a more central location within the archipelago, such as Borneo, enhances Indonesia’s strategic positioning. This new location will be closer to other major islands like Sulawesi and Kalimantan, enabling better access to the country's vast natural resources and improving connectivity within the nation.

The move also reflects Indonesia’s aspirations to assert its influence more broadly in the Asia-Pacific region. Nusantara’s location could serve as a symbolic and practical step towards this goal, positioning Indonesia as a key player in regional and global affairs.

6. Creating a Sustainable, Smart City

The development of Nusantara presents an opportunity for Indonesia to build a modern, sustainable capital from scratch. The vision for the new capital includes green spaces, smart technology, and environmentally friendly infrastructure, setting a new standard for urban development in Indonesia. This approach aims to address the mistakes made in Jakarta and create a city that is resilient to future challenges, particularly those related to climate change and urbanization.

Conclusion

The decision to move Indonesia’s capital from Jakarta to Nusantara is driven by a combination of urgent environmental needs, economic goals, and strategic considerations. While the move is ambitious and fraught with challenges, it represents a forward-looking effort to ensure the long-term sustainability and prosperity of the nation. By addressing the limitations of Jakarta and redistributing growth across the archipelago, Indonesia hopes to create a more balanced, resilient, and prosperous future for all its citizens.

Resources

1. Indonesian Government Official Websites:

   • Ministry of National Development Planning (Bappenas): This government body is responsible for overseeing the new capital's development plans. Their website contains reports and official documentation on the move to Nusantara.

     • Website: https://www.bappenas.go.id/

2. Indonesian Presidential Speeches and Releases:

   • The official statements and speeches by President Joko Widodo on the rationale behind relocating the capital can be found on the Indonesian Presidential Office website.

     • Website: https://setkab.go.id/ (in Indonesian)

3. World Bank Reports:

   • The World Bank has conducted studies and issued reports related to urban development, environmental challenges in Jakarta, and the broader economic impact of relocating Indonesia’s capital.

     • Website: https://www.worldbank.org/

4. United Nations and Climate Change Organizations:

   • Reports on Jakarta’s environmental issues, particularly its vulnerability to flooding and rising sea levels, can be found in the United Nations Environment Programme (UNEP) and Intergovernmental Panel on Climate Change (IPCC) reports.

     • UNEP: https://www.unep.org/

     • IPCC: https://www.ipcc.ch/

5. Media Outlets and News Organizations:

   • BBC News and The Guardian have extensively covered the relocation of Indonesia’s capital, focusing on its environmental, political, and economic implications.

     • BBC: https://www.bbc.com/news/

     • The Guardian: https://www.theguardian.com/

6. Research Papers and Journals:

   • Journal of Southeast Asian Studies and Asian Survey often publish academic papers discussing Indonesia’s political and economic developments, including the decision to move the capital.

     • Cambridge University Press: https://www.cambridge.org/core/journals/journal-of-southeast-asian-studies

     • University of California Press: https://online.ucpress.edu/as

7. World Economic Forum (WEF):

   • The WEF provides insights into large-scale infrastructure projects globally and has featured discussions on Indonesia’s capital relocation in the context of sustainable urban development.

     • Website: https://www.weforum.org/

8. Local News Outlets:

   • Indonesian news outlets like The Jakarta Post and Kompas provide local coverage, often with updates on the development of Nusantara.

     • The Jakarta Post: https://www.thejakartapost.com/

     • Kompas: https://www.kompas.com/ (in Indonesian)

These resources should provide you with in-depth information on Indonesia’s decision to move its capital, the challenges facing Jakarta, and the vision for the new city, Nusantara.