Indonesia's New Capital Nusantara to Open Soon

In a bold move, Indonesian President Joko Widodo, known as Jokowi, revealed plans to relocate the nation’s capital from Jakarta to Nusantara, situated in the jungles of East Kalimantan, during his annual address on August 16, 2019. Jokowi emphasized that a capital city symbolizes national identity and progress, asserting that the new location would distance the government from Jakarta's complexities and enhance democratic governance. He expressed concerns about the potential for an increasingly autocratic government if the capital remained in Jakarta, where civil society plays a crucial role in maintaining checks and balances. The ambitious project aims to relocate 20,000 civil servants and accommodate approximately 1.9 million residents by 2045, surpassing the population of East Kalimantan’s capital, Samarinda. However, the initiative faces significant financial challenges, with an estimated cost of $35 billion. The government has allocated $4.6 billion from the state budget for the capital's development from 2022 to 2024, which constitutes about 14 percent of the total budget for Nusantara. Critics have pointed out that the reliance on foreign investment highlights contradictions within the project. The development of Nusantara is planned in five phases, with the first phase commencing in August 2022 and expected to be completed by 2045. The government envisions a sustainable city where 80 percent of transportation will be via public transit, bicycles, or walking, aiming for carbon neutrality by 2045. As the first phase nears completion, Jokowi convened his cabinet in the newly constructed presidential palace, marking a significant milestone in one of Indonesia's largest infrastructure projects.