Indonesia’s Bold Capital City Shift: From Jakarta to Nusantara
Written by: Nithya Rao
Since Indonesia’s independence, there was always a vision of a new capital. Today, that ambition is becoming a reality - not because of a vision, but because of climate change. After decades of struggling with congestion, pollution, flooding, and land subsidence in the current capital city of Jakarta, the government has begun building a brand-new capital city called Nusantara on the island of Borneo. Its one of the most ambitious plans of the century - but is it required, and will it actually solve Indonesia’s problems?
Jakarta is home to more than 10 million people. It has been identified as the ‘fastest sinking city in the world’; some areas are sinking as much as 25 centimeters per year. Some estimates suggest major parts of the city could be fully submerged by 2050! The most pressing reason why this is happening is land subsidence, the gradual or sudden sinking of the Earth's surface due to the removal or displacement of underlying material, which is occurring due to excessive groundwater extraction. Additionally, rising sea water levels have also contributed to the city’s sinking. Apart from environmental problems, the city also has many infrastructural issues such as overcrowding, air pollution, traffic congestion, and more. This has increased Jakarta’s vulnerability, which threatens both daily life and the functioning of the government.
Because of these issues, in 2019, the then president Joko Widodo announced the shifting of the country’s capital to Nusantara, a city on the island of Borneo. The roughly 965-square-mile (2,500-square-kilometer) site was selected because it faces a lower risk of natural disasters; it is located inland and is far from the earthquakes and volcanoes that frequently affect other parts of Indonesia. The location was also chosen to help reduce longstanding inequalities between densely populated Java and the country’s outlying islands. Construction officially started in 2022, and the city is planned to be completed by 2045. Around 1.2 million construction workers and civil servants are planned to be relocated to Nusantara by the time the city has been constructed.
There are, however, many controversies regarding the construction of Nusantara. One of the biggest concerns is the potential ecological impact: the chosen site sits within one of Borneo’s most biodiverse regions - the East Kalimantan province. Large scale development in this area causes deforestation and disrupts wildlife, and the area is home to many endangered species like orangutans, leopards, and other key species. The development of a new capital city also displaces many indigenous groups, with more than 5 villages already cleared due to construction. Additionally, the project’s cost is estimated to be around $35 billion USD: critics argue that this could strain national finances and divert resources from current pressing needs. If environmental safeguards and social protections are not set in place, then some skeptics wonder how effective Nusantara will be at solving Jakarta’s problems.
Despite these concerns, supporters see the relocation as a visionary response to climate change and urban pressures. By shifting its capital, Indonesia is taking proactive steps to secure its future and build a more resilient government center. While Jakarta will remain the country’s economic hub, Nusantara is set to represent a new chapter of sustainability. As construction progresses, the world will be observing whether the shifting of a country’s capital will be an example to learn from, or be a cautionary tale.
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