Indonesia’s parliament finally passed a bill on January 18 to move the country’s capital from Jakarta to an area in East Kalimantan province on Borneo island, while President Joko Widodo decided on the name of the new planned city. It will be called “Nusantara”, which is the Javanese name for the Indonesian archipelago.
The president said Widodo chose the name from more than 80 options, chosen because it “reflects the geography of Indonesia and is internationally iconic”.
A new state capital law now provides the legal framework for Widodo’s ambitious $32.5 billion mega-project and sets out how to fund and manage its development. The state will bear 19% of the total cost, with the rest coming from public-private partnerships and private investment.
“New economic center of gravity”
“The new capital has core functions, a symbol of national identity and a new economic center of gravity,” Indonesia’s Planning Minister Suhasso Monoalpha told parliament after the bill passed.
“Moving the capital to Kalimantan was based on several considerations, regional advantages and benefits,” Monoafa told Indonesian Parliament TV.
Indonesian Finance Minister Sri Mulyani added that the new capital will be divided into five stages of development. The first phase is expected to begin in 2022 and continue until 2024, with full development expected to continue until 2045.
Transition from jungle to urban area
Lawmakers stressed the importance of carefully considering the environmental impact of development on bushland areas. According to the Indonesian National Planning and Development Agency, the total land area of the new capital is about 2,560 square kilometers, almost all of which is converted from forest area.
Nusantara will span parts of the North Penjam Paser and Kutai Kartanegara districts in East Kalimantan, the geographic center of Indonesia, about 2,000 kilometers northeast of the current capital, Jakarta. It will be headed by a chief authority whose position is equivalent to a minister.
Lighten the burden on Jakarta
Under the project, Jakarta will remain the country’s commercial and financial center, but government administrative functions will be transferred to the new capital.
The government hopes the relocation will shift some of the country’s wealth and jobs away from Java and ease the burden on Jakarta, a central city of 10.6 million and a metropolitan area of 31.2 million, making it the largest city one. The world’s most populous urban agglomeration. Jakarta is notoriously congested, floods frequently, and is one of the fastest sinking cities in the world due to over-exploitation of groundwater, some of the core motivations for moving the capital apart from economic redistribution.
Award-winning design for Indonesia’s planned new capital Nusantara on Borneo island Indonesia’s parliament finally passed a bill on January 18 to move the country’s capital from Jakarta to an area in East Kalimantan province on Borneo island, while President Joko Widodo decided on the name of the new planned city. It will be called “Nusantara”, which is the Javanese name for the Indonesian archipelago. The president said Widodo chose the name from more than 80 options, chosen because it “reflects the geography of Indonesia and is internationally iconic”. New state capital law now…
Indonesia’s parliament finally passed a bill on January 18 to move the country’s capital from Jakarta to an area in East Kalimantan province on Borneo island, while President Joko Widodo decided on the name of the new planned city. It will be called “Nusantara”, which is the Javanese name for the Indonesian archipelago.
The president said Widodo chose the name from more than 80 options, chosen because it “reflects the geography of Indonesia and is internationally iconic”.
A new state capital law now provides the legal framework for Widodo’s ambitious $32.5 billion mega-project and sets out how to fund and manage its development. The state will bear 19% of the total cost, with the rest coming from public-private partnerships and private investment.
“New economic center of gravity”
“The new capital has core functions, a symbol of national identity and a new economic center of gravity,” Indonesia’s Planning Minister Suhasso Monoalpha told parliament after the bill passed.
“Moving the capital to Kalimantan was based on several considerations, regional advantages and benefits,” Monoafa told Indonesian Parliament TV.
Indonesian Finance Minister Sri Mulyani added that the new capital will be divided into five stages of development. The first phase is expected to begin in 2022 and continue until 2024, with full development expected to continue until 2045.
Transition from jungle to urban area
Lawmakers stressed the importance of carefully considering the environmental impact of development on bushland areas. According to the Indonesian National Planning and Development Agency, the total land area of the new capital is about 2,560 square kilometers, almost all of which is converted from forest area.
Nusantara will span parts of the North Penjam Paser and Kutai Kartanegara districts in East Kalimantan, the geographic center of Indonesia, about 2,000 kilometers northeast of the current capital, Jakarta. It will be headed by a chief authority whose position is equivalent to a minister.
Lighten the burden on Jakarta
Under the project, Jakarta will remain the country’s commercial and financial center, but government administrative functions will be transferred to the new capital.
The government hopes the relocation will shift some of the country’s wealth and jobs away from Java and ease the burden on Jakarta, a central city of 10.6 million and a metropolitan area of 31.2 million, making it the largest city one. The world’s most populous urban agglomeration. Jakarta is notoriously congested, floods frequently, and is one of the fastest sinking cities in the world due to over-exploitation of groundwater, some of the core motivations for moving the capital apart from economic redistribution.
