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– The new capital will be on the island of Kalimantan (Borneo), where Malaysia and Myanmar have territories.
Indonesia’s parliament has approved a law on the new capital, which provides a legal framework for the ambitious $ 32 billion project. The initiative was announced by President Joko Vidodo in 2019, but was delayed due to the pandemic. Its goal is for the government to leave Jakarta and move to the jungles of Kalimantan (Borneo is the more well-known name on the island in the West, introduced by the Dutch).
The name of the future capital will be Nusantara, which in Javanese means “archipelago” or “outer islands”. The president’s choice is personal, but there has been criticism that it will be confusing for people, and that it is strange to baptize something in a speech used thousands of miles away and not in Kalimantan. There are also dissatisfied that the period for public discussion and eco-assessment was too short.
Jakarta has become an overcrowded city of 10 million, suffering from constant huge congestion, smog, polluted water. The biggest problem is that the whole area is sinking below sea level – some areas by 25 cm per year.
The new law determines how the design and construction of the new capital will be financed and who will lead all this – a special agency with the status of a ministry. The names of a former minister of technology and a former governor of Jakarta have been linked to the project leader.
The authorities are also trying to create a new image of the largest economy in Southeast Asia. Nusantara should be a “low carbon hub” with pharmaceutical, technology and health companies.
The relocation of 2,000 kilometers from Jakarta, which will remain the main trade and financial center, will also have the effect of creating a new source of economic activity. On the island of Java, where the current capital is, 60% of the population and half of the economy are concentrated, although Kalimantan is 4 times larger in area.
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