Nusantara
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What is Nusantara?
Nusantara is the planned capital of Indonesia, located in East Kalimantan province, near Balikpapan. Construction started in 2022, with the first residents expected in 2024, and full completion scheduled for 2045.
The relocation of the capital from Jakarta was prompted by Jakarta's overpopulation and susceptibility to flooding. Nusantara's site was selected for its low risk of natural disasters and to reduce inequality between Java and the outlying islands. Located on Borneo, the location is a political statement on developing the whole nation.
Envisioned as a smart city, Nusantara will feature green spaces, public transportation, and renewable energy. The environmental impact of the construction is debated, considering the area's rainforest and endangered species.
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Why is Nusantara being built as the new capital of Indonesia?
Nusantara is being constructed as Indonesia's new capital to address Jakarta's overpopulation and susceptibility to flooding. Jakarta is below sea level and faces ongoing environmental degradation.
The location of Nusantara, on the island of Borneo, is considered a political move to reduce inequality between Java and the outlying islands. The site was chosen for its low risk of natural disasters, such as earthquakes and volcanoes, which are common in Indonesia.
Nusantara is planned as a smart city powered by renewable energy, with substantial green spaces and public transportation. The Indonesian government estimates the city's construction will cost over $30 billion, mainly funded by private investment, and is scheduled to be completed by 2045.
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Where is Nusantara located?
Nusantara, the planned capital of Indonesia, is situated in the East Kalimantan province, close to the city of Balikpapan. Construction started in 2022, and the project should be done by 2045. Nusantara's location on the island of Borneo is a political statement on developing the nation as a whole and was chosen for its low risk of natural disasters. The majority of the city's site is peat bog and swampland, much of it covered in dense rainforest.
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How will Nusantara be different from Jakarta, the current capital?
Nusantara, Indonesia's future capital, is designed to address Jakarta's challenges, such as overpopulation and flood risk. Nusantara's location was selected because of its low risk of natural disasters.
Unlike Jakarta, which is below sea level, Nusantara is inland and aims to reduce inequality between Java and other islands, signifying a focus on nationwide development.
Envisioned as a smart city, Nusantara will feature green spaces, public transportation, and renewable energy. The environmental impact is debated, with concerns about disturbing forests and endangered species like orangutans. Supporters plan for wildlife corridors and protected forests. The project has faced political controversy, with some viewing it as a distraction from other issues.
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What are some of the planned features or goals for Nusantara?
Nusantara, the planned capital of Indonesia, aims to address Jakarta's overpopulation and environmental issues. Scheduled for completion by 2045, Nusantara intends to be a smart city powered by renewable energy, featuring green spaces and public transportation. The government anticipates a population of 1.9 million upon completion.
However, the project faces controversy, with critics citing potential environmental damage to the heavily forested site and its endangered orangutan population. Supporters plan for wildlife corridors and ecotourism protectorates, emphasizing the extensive protected forest coverage. The project's future remains debated, especially after the 2024 presidential transfer of power.
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What challenges might Indonesia face when moving its capital to Nusantara?
Indonesia may face multiple challenges moving its capital to Nusantara. The project's feasibility has been questioned because of its ambitious infrastructure and short time frame for construction. The selection of the site occurred rapidly, with almost no consultation with local residents, leading to criticism that the central government is out of touch with the reality in Kalimantan.
The project faces intense political controversy, with many Indonesians viewing it as a distraction from the country’s ongoing issues with corruption and development. The environmental impact of Nusantara’s construction is also hotly contested because the city site is heavily forested and includes a nature preserve that is home to thousands of endangered animals. Additionally, much of the city will be powered by dams, which are expected to destroy several villages.
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Nusantara, planned capital of Indonesia, located in East Kalimantan province near the city of Balikpapan. Construction began in 2022, and the first residents are expected to arrive in 2024. The project is scheduled for completion by 2045.
Background, site, and construction plan
Indonesian officials have discussed relocating the capital for decades, as the current capital, Jakarta, is severely overpopulated and susceptible to flooding (due to its location below sea level and ongoing environmental degradation). In 2019 Pres. Joko Widodo announced a plan to build a new capital to which the administrative state would relocate. The site, an area of roughly 965 square miles (2,500 square km), was chosen partly because of its low risk of natural disasters—it is inland in an area with few earthquakes and volcanoes, both common threats in Indonesia—and partly to lessen the inequality that persists in Indonesia between the most populous island, Java, and the outlying islands. The location of Nusantara on the island of Borneo is thus considered a political statement on the importance of developing the nation as a whole.
The majority of the city site consists of peat bog and swampland, much of which is covered in dense rainforest. It is also home to several villages, some of which have been relocated to make way for the new construction.
The new capital has been envisioned as a smart city, featuring substantial green spaces and extensive public transportation in addition to being powered entirely by renewable energy. The cost of the city’s construction is estimated at more than $30 billion, mainly funded by private investment. By the city’s completion in 2045, the Indonesian government predicts that Nusantara will have a population of 1.9 million. The first residents, as in planned capitals such as Nay Pyi Taw and Brasília, will be a combination of construction workers and civil servants relocated by the government.
Controversy and criticism
Feasibility
Since its announcement, Nusantara has been highly controversial and subject to a wide range of criticism. The basic feasibility of the project has often been questioned, both in terms of its ambitious infrastructure and the short proposed time frame for construction. The city’s site was selected quickly, and almost no local residents were consulted, leading to criticism that the central government is out of touch with the reality in Kalimantan. The cost of the city has also been criticized because Indonesia is not a wealthy nation, and the government has struggled to attract private investors to fund the city.
The future of Jakarta
Some Indonesians criticize the decision to move the capital and view the relocation of the administrative state away from Jakarta as an abandonment that provides a disincentive for the government to address the ongoing problems faced by the city’s residents. The government has vehemently denied this, insisting that Jakarta will remain the nation’s economic capital and will continue to be a priority regardless of where the civil service is located.
Environmental impact
The environmental impact of Nusantara’s construction has been hotly contested. The city site is heavily forested and includes a nature preserve that is home to thousands of endangered animals, most notably a large population of orangutans. Many critics believe environmental damage from the city’s construction to be inevitable. Supporters of Nusantara counter this criticism by citing plans for wildlife corridors and ecotourism protectorates. They also note that, while much of the current forest area of Nusantara is productive (meaning it can be licensed for logging and other resource extraction), the fully constructed Nusantara will feature extensive protected forest coverage. Whether these goals are realistic remains a subject of debate. Additionally, the plan to power Nusantara entirely through renewable energy could undermine the economy of Kalimantan, a major coal producer.
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Displacement of local population
Nusantara’s shift to renewable energy will also come at a cost to current residents, as much of the city will be powered by dams (currently under construction) which are expected to destroy several villages. The Indigenous people of the region—a group known as the Balik—have conflicting opinions about the capital’s relocation to their ancestral home. Some welcome the move and the jobs it will bring in construction and tourism. However, Balik landowners in particular are threatened, as many Indigenous people lack documentation proving their land ownership and have long been vulnerable to eviction by corporations and the government. Nusantara’s construction has already displaced many local people, and, while some have been compensated, inflation of land prices has prevented many from finding new homes.
General outlook
Since its inception, the Nusantara project has been the subject of intense political controversy. Many Indonesians view the plan as a distraction from the country’s ongoing issues with corruption and development and even accuse the government of attempting to insulate itself from criticism and protest by distancing itself from civil society. Nonetheless, construction of the capital was mandated by law in 2022, and the victory of Joko Widodo’s ally Prabowo Subianto in the 2024 presidential election is regarded by some as securing Nusantara’s future. Other observers, however, suggest that the project is an overly ambitious attempt by Widodo to cement his legacy and that, following the presidential transfer of power in October 2024, it may be sidelined by his successors.