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The Inquiry

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.
23:47

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Quick takeaways

  • Jakarta's environmental challenges, such as sinking and pollution, necessitate the relocation of the capital.
  • The success of Indonesia's capital relocation project depends on foreign investment and the continuity of government support.

Deep dives

Burden of Jakarta

The burden of Jakarta, the current capital city of Indonesia, has led to the decision to relocate. Jakarta suffers from congestion, traffic jams, air and water pollution, and is sinking due to rising sea levels. These environmental challenges pose threats to public health and make the city vulnerable to climate change. The chosen location for the new capital, known as Musantara, is in East Kallimantan province, situated between Balikapan and Samarinda. The move is part of President Widodo's vision to reduce Java's dominance and distribute economic activity more equally among Indonesia's islands.

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