Nusantara to Be Built in Eastern Kalimantan, Marking a Significant Shift from Jakarta
JAKARTA: The Indonesian parliament has officially passed a Bill concerning the nation’s future capital, set to be located in eastern Kalimantan, on Tuesday (Jan 18). This legislative approval paves the way for construction to commence, with the relocation from Jakarta planned to begin in 2024.
During the parliamentary session, House of Representatives Speaker Puan Maharani inquired whether lawmakers were ready to approve the draft law. The Bill received widespread support, with the exception of opposition from the Prosperous Justice Party.
The new capital will be named Nusantara, as confirmed by National Development Planning Minister Suharso Monoarfa on Monday. The term “Nusantara,” which means “archipelago” in Indonesian, reflects a vision of Indonesia’s geography and cultural diversity. Minister Monoarfa elaborated on the name’s significance, stating, “Nusantara represents the concept of Indonesia’s geographical area, uniting islands through the ocean, and embracing the nation’s rich plurality.”
Furthermore, Monoarfa indicated that the new capital would be governed by a regional authority equivalent to a provincial government.
In a press conference held shortly after the Bill’s passage, Finance Minister Sri Mulyani outlined the development process for the new capital, which will occur in five stages. The first stage, slated for 2022 to 2024, is deemed critical. The final phase is expected to be completed by 2045.
During this initial stage, authorities will prioritize essential infrastructure, such as roadways and alternative ports, to ensure access to the new site. “From 2022 to 2024, our focus will be on key developments. We acknowledge the ongoing challenges posed by the COVID-19 pandemic, which will remain a priority. However, the new capital’s development can also contribute to our economic recovery efforts,” Minister Mulyani stated.
The initiative to establish a new capital began in 2019 when President Joko Widodo announced the plan to shift from Jakarta—a densely populated megacity—to the more remote regencies of Penajam Paser Utara and Kutai Kartanegara in East Kalimantan. Authorities argue that this relocation is crucial to alleviate Jakarta’s congestion and sinking issues while promoting development in Kalimantan and Indonesia’s eastern regions, where economic activities have predominantly centered around Java.
Initially, construction of the new capital, estimated to cost 466 trillion rupiah (approximately US$32 billion), was expected to start in 2020, but the COVID-19 pandemic delayed these plans. Discussions continued throughout the previous year, and renowned Balinese sculptor Nyoman Nuarta has been designated as the designer of the state palace. Earlier this month, Nuarta shared on Instagram that President Widodo has approved the final design, which draws inspiration from the country’s emblematic mythological bird, Garuda.
Minister Mulyani, alongside Minister of Public Works and Public Housing Basuki Hadimuljono, visited the construction site earlier this month to assess preparations for the upcoming project.
