Indonesia’s Capital Relocation: A Look at Nusantara

In March 2022, a monumental decision emerged from Indonesia’s legislature to relocate the country’s capital from Jakarta to a new city named Nusantara. This decision came during a period when Jakarta’s current representative saw increasing ease in adapting to life in the bustling metropolis. With a pressing question hanging in the air—“Will our office in Jakarta also move to Nusantara?”—many local staff found themselves grappling with uncertainty about the changes ahead.

Understanding Jakarta: The Current Landscape

Jakarta, the capital city of Indonesia, is known less for its governmental significance to tourists familiar with the alluring beaches of Bali and more as one of the world’s largest urban conglomerates. With over 10 million residents, Jakarta is classified as a mega-city, illustrating remarkable population density and urban growth; the city’s trajectory suggests it may exceed the Tokyo metropolitan area in population by 2030.

The contrasts within Jakarta are striking. Jalan Sudirman, where the NHK Jakarta Bureau is located, bustles with high-rise business buildings. Yet in the shadows of these skyscrapers, traditional food stalls and modest homes remind residents of the city’s historical roots amid accelerating development.

The Journey to Nusantara

Plans to relocate the capital were first proposed back in 2019 under President Joko Widodo’s leadership, sparking initial skepticism among citizens who had witnessed previous leaders suggest similar moves without follow-up. However, with the passage of legislation in January 2022 and the establishment of a dedicated government body in March, the prospect of moving to Nusantara gained substantial credibility.

What Does Nusantara Represent?

Located approximately 2,000 kilometers from Jakarta on the eastern side of the island of Kalimantan, Nusantara (meaning ‘archipelago’) is envisioned as a new capital that encapsulates Indonesia’s identity—spanning over 17,000 islands. The area where Nusantara will be built, estimated to cover about 250,000 hectares, mirrors the size of Japan’s Kanagawa Prefecture. The government plans to break ground for construction in 2024, targeting completion by 2045.

Addressing Jakarta’s Problems

The decision to shift the capital is driven by a host of challenges Jakarta currently faces:

1. Population Concentration: Java, where Jakarta is located, houses over half of Indonesia’s population despite being only 6% of the country’s land area. This imbalance results in severe traffic congestion and air pollution, with Jakarta identified as having some of the worst traffic globally.
2. Rising Waters: Jakarta is also confronting significant environmental threats, particularly land subsidence due to over-extraction of groundwater, with predictions suggesting that up to 40% of the city could be below sea level by 2050 if no action is taken.
3. Seismic Risks: Situated near major fault lines, Jakarta is at risk for large earthquakes. Due to this vulnerability, the government has been analyzing Nusantara’s safer seismic profile.

A Visit to Nusantara

Following the landmark legislative decision, a journey to Nusantara revealed a landscape dominated by dense forests and the sounds of nature, contrasting sharply with the urban sprawl of Jakarta. The site, referred to as the “zero point” of the new capital, is still largely pristine and untouched.

As the government initiates the construction of infrastructure, early signs of development are already evident, with roads and dams being established, and private investments rapidly increasing local land prices.

Perspectives on Change

Local residents express optimism about the implications of building a new capital. Some believe that with the establishment of Nusantara, opportunities for improved living standards, education, and healthcare will flourish. However, the transition also raises concerns—many locals oppose the move, arguing about potential wastage of resources, while environmentalists fear that deforestation could endanger local wildlife, especially the endangered orangutans.

Challenges Ahead

The road ahead is anything but smooth. Funding for the capital relocation is a substantial consideration, with estimates around 4 trillion yen needed for the overall costs. The government’s strategy involves leveraging private investment and foreign contributions. However, with recent setbacks concerning potential partnerships, including a withdrawal from collaboration with Japan’s SoftBank Group, skepticism remains about whether sufficient funds will materialize.

Furthermore, Jakarta’s impending transition could be in jeopardy, depending on the incoming leadership after President Jokowi’s term ends in 2024. The continuity of the relocation project remains uncertain, posing challenges for its long-term execution.

Reflections from Japan: A Perspective on Capital Movement

Historically, Japan has grappled with discussions about moving national functions away from Tokyo, historically citing issues like traffic congestion and disaster preparedness, faced with the potential for significant earthquakes. This parallel draws interest in how Indonesia addresses similar challenges with its shift to Nusantara.

Experts highlight that both nations face pressing realities regarding disaster preparedness and urban planning and suggest opportunities for cooperative efforts going forward.

The Vision for a New Capital

By 2045, when Nusantara is anticipated to be complete, Indonesia aims to also mark its emergence as a developed nation. The government envisions a technologically advanced city relying entirely on renewable energy, nestled within lush forests while emphasizing sustainable practices.

The future of Nusantara faces the dual challenge of being an ambitious project amid economic uncertainties and the need to balance ecological preservation with urban growth. As developments unfold, the continuing story of Nusantara will remain closely followed, shaping the landscape of Indonesia’s future.