 "When will Nusantara, Indonesia’s future capital, be ready?")
Indonesian president Joko Widodo started working from the country’s future capital Nusantara on Monday (July 29). The outgoing leader spent his first night at the eagle-shaped palace of the new capital, where he is likely to stay for the last few months of his presidency.
Indonesia is shifting its capital from Jakarta to the planned city of Nusantara in East Kalimantan province on Borneo. The decision was announced by Widodo in 2019 citing Jakarta’s increasing environmental problems.
What’s wrong with Jakarta? What is Nusantara and when will the work on the new capital be completed? Let’s take a closer look.
Jakarta’s woes
Jakarta suffers from pollution and traffic congestion. In fact, it is one of the most polluted cities in the world.
The over-populated Jakarta, which lies on the northwest coast of Java island, is prone to earthquakes. It is also rapidly sinking. If nothing is done, many parts of the city will submerge underwater by 2050.
Jakarta has subsided more than 16 feet in the past 25 years. Excessive groundwater extraction has led to subsidence. Jakarta’s overcrowding and major urban development have further put pressure on soil, resulting in compaction and land subsidence, as per The Hindu.
Many Indonesian presidents have attempted to find a solution to Jakarta’s woes, along with shifting the capital to another city.
In 2019, Widodo reportedly said in a speech, “The location is very strategic – it’s in the centre of Indonesia and close to urban areas…the burden Jakarta is holding right now is too heavy as the centre of governance, business, finance, trade and services.”
Impact Shorts
More ShortsThe New State Capital Law Bill was passed by the country in 2022, moving the capital city from Jakarta to a new one called Nusantara.
Nusantara: Indonesia’s new capital
Nusantara, also known as IKN, is located within the jungle of East Kalimantan on the island of Borneo which is shared by Indonesia, Malaysia and Brunei.
The new capital is in the North Penajam Paser and Kutai Kartanegara regions.
East Kalimantan, which spreads across 127,346.92 square kilometres, is bigger than Jakarta and less populated. It is rich in flora and fauna, which has prompted environmentalists and activists to warn that the relocation of the capital would trigger massive deforestation, putting the habitat of animals and trees in danger, reported Indian Express.
Nusantara is planned as a “green, walkable” metropolis, which will be completely powered by renewable energy by 2045, as per a News18 report.
Nusantara, which is about 1,200 km away from Jakarta, is expected to be home to 1.9 million (19 lakh) people by 2045, reported The Guardian.
According to Widodo, the new capital represents “a new work ethic, a new mindset, a new green economy.”
“Nusantara will shape the new mindset of Indonesians by being a projection of the city of the future,” Bambang Susantono, the then chairman of the Nusantara National Capital Authority, said, as per Reuters Plus. “With Nusantara, we will set up a new standard to live by.”
As the Indonesian capital moves away from Jakarta, the presidential palace, government institutions, and offices and homes of civil servants and ministers will also relocate to East Kalimantan.
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When will the capital move?
The ambitious $33 billion project kickstarted in July 2022. However, progress has been slow amid construction delays and missed deadlines, as per The Guardian report.
Most of the capital city’s buildings are incomplete. While the new presidential palace is 88 per cent finished, many ministry buildings have only lower floors usable, reported Associated Press (AP).
The project is also beset by a lack of foreign investment and managerial and land issues. The plan to shift 12,000 civil servants to Nusantara in early July had to be deferred.
Nusantara is set to host its first Independence Day celebration on August 17. It is then that the official transfer of the capital city is likely to occur. However, the capital will be ready by just 15 per cent next month.
An official decree has to be issued to recognise Nusantara as the new capital. The outgoing president has hinted that President-elect Prabowo Subianto, who will be sworn into office in October, could issue the decree, reported AP.
Authorities are scrambling to complete major infrastructure projects before next month’s celebration.
“We came here to check the latest progress of the IKN, especially the construction of the palace, I see everything is still in process,” Widodo told reporters on Monday, as per AP.
Outside the new Garuda Palace, he said, “This is a big job. It can take 10, 15, 20 years. This is not a job that takes one or two years.”
As Reuters noted, the outgoing president has become more pragmatic in his comments about the new capital. “Lots of people think we are rushing…No, we’re not rushing the job. It’s in accordance with procedures,” he said.
The relocation plan is facing scrutiny amid delayed construction, which led to the resignations of the head of the Nusantara Capital Authority and his deputy last month.
The Indonesian government has relied on private investment to build the new capital, with the state only bearing 20 per cent of the cost.
To attract investments, Widodo signed a presidential regulation in early July, giving certain rights to investors, including land rights of up to 190 years in Nusantara.
Prabowo has vowed to continue Widodo’s landmark projects, including the IKN. However, Sulfikar Amir, an associate professor of science, technology, and society at Nanyang Technological University in Singapore, has alleged the rush to implement the project has affected its financing and planning.
“Who wants to work in the middle of the forest with [a] lack of infrastructure?” he was quoted as saying by The Guardian.
With inputs from agencies
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