Indonesia Builds New Capital Nusantara
The government of Indonesia is implementing one of the largest infrastructure projects in its history - the construction of a new capital called Nusantara. The city is being built on the island of Kalimantan, with the total project cost estimated at $30–35 billion. The development will take place in several phases and is planned to continue until 2045.
The decision to relocate the capital was officially announced by President Joko Widodo in 2019. One of the key reasons was the extreme pressure on the current capital, Jakarta.
Today, Jakarta is considered one of the most overloaded megacities in Asia. The population of the metropolitan area exceeds 30 million people, creating serious challenges for transportation, infrastructure, and the environment.
For comparison, the populations of major cities in the region are approximately:
- Seoul ~ 26 million people
- Bangkok ~ 11 million people
- Jakarta ~ 30 million people
- Kuala Lumpur ~ 8 million people
Another major issue is land subsidence in Jakarta, which in some areas reaches up to 25 cm per year, making it one of the fastest-sinking megacities in the world.
Another reason for the move is the country’s economic structure. Around 60% of Indonesia’s economy is concentrated on the island of Java. This imbalance has led to uneven regional development and heavy investment concentration in a single region.
The construction of the new capital is expected to address several strategic goals:
- reduce the burden on Jakarta
- decrease the economic concentration on Java
- stimulate development in other regions
- attract infrastructure investment
- create a new center of economic growth
The Nusantara project is envisioned as a future administrative, technological, and economic hub, symbolizing a new stage of development for Indonesia and potentially becoming one of the most modern capitals in the world.