Can Indonesia pull off relocating its capital?

Jan 18, 2024

Indonesia plans to relocate its capital from Jakarta to Borneo due to overcrowding and sinking. The new city, Nusantara, aims to distribute economic activity and accommodate 2 million people. However, securing funding from foreign investors is a challenge. The upcoming presidential elections raise doubts about continuing the project. Concerns include regional inequalities, environmental harm, and limited employment opportunities. The next president will face challenges in progress, neighboring countries, and long-term commitment.

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Introduction

00:00 • 2min

The Long-standing Conversation about Relocating Indonesia's Capital City

02:01 • 2min

Relocating the Capital of Indonesia to Musantara

04:03 • 2min

Relocating Indonesia's Capital City

05:41 • 5min

Addressing Inequalities and Environmental Concerns in Capital Relocation

11:01 • 7min

The Challenges of Relocating Indonesia's Capital

17:35 • 7min

Indonesia’s ambitious plan to move the administrative headquarters of its capital city from Jakarta to a new location on the island of Borneo, in the East Kalimantan province, is nearing the completion of its first phase. Known as Nusantara, the new city’s inauguration is scheduled to coincide with Indonesia’s Independence Day on 17th August, the date of the final term of office for the current President Joko Widodo.

The project has been deemed necessary as Jakarta is considered no longer fit for purpose. Located on the island of Java, it ranks as one of the most densely populated cities in the world and it is reported to be sinking by around 17 centimetres a year in some areas, due to a combination of environmental pollution and climate change.

With four more phases to go, around two million people are expected to inhabit Nusantara by the planned completion date of 2045, but that remains dependent on a number of factors and the schedule has already hit some challenges.

Future development is reliant on billions of dollars from foreign investors and currently the Government is struggling to secure much commitment. Furthermore, with Presidential elections due next month, there are concerns about whether a new leader will be inclined to continue with the vision announced by the outgoing President Joko Widodo.

So this week on The Inquiry, we’re asking ‘Can Indonesia pull off relocating its capital?’

Contributors: Dr Athiqah Nur Alami, Head of Research Centre for Politics, National Research and Innovation Agency, Indonesia. Dimas Wisnu Adrianto, Assistant Professor, Department of Urban and Regional Planning, Brawijaya University, Indonesia Sulfikar Amir, Associate Professor of Science, Technology and Society, School of Social Sciences, Nanyang University, Singapore Julia Lau, Senior Fellow and Co Coordinator, Indonesia Studies Programme, ISEAS-Yusof Ishak Institute, Singapore

Presenter: Charmaine Cozier Producers: Matt Toulson and Jill Collins Editor: Tara McDermott Technical Producer: Nicky Edwards and Toby James Production Co-ordinator: Tim Fernley

Image credit: Dimas Ardian/Bloomberg/Getty.