Jakarta, Indonesia’s Capital, Set to Move to Borneo Island
Indonesia is in the final stages of relocating its capital city from Jakarta to Borneo Island, citing issues such as unplanned urbanization, traffic congestion, and natural disasters. The new capital, named Nusantara, is envisioned as an 'environmentally friendly city' exclusively for electric vehicles
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With over 10 million residents, Jakarta faces challenges like rapid urbanization, insufficient infrastructure, traffic woes, and annual floods during monsoon season. The new capital, covering 561 square kilometers in the east of Kalimantan, aims to become Southeast Asia’s first ‘green capital.’
Java Island’s dominance in development and investments has contributed to income inequality, prompting the government to decentralize by moving the capital outside Java. Jakarta is expected to maintain its economic significance, but a long-term plan to address infrastructure issues is crucial.
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The relocation project, estimated to cost around $32 billion, addresses Jakarta’s sinking issue, with some areas sinking 25 centimeters annually. Approximately half of Jakarta lies below sea level, and by 2050, projections suggest that a third of the city may be submerged.”