Indonesia’s new capital got a name: Nusantara

The winning design for Nusantara, Indonesia’s planned new capital on Borneo island

Indonesia’s parliament on January 18 finally passed a bill to relocate the nation’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,” a Javanese name for the Indonesian archipelago.

The name had been selected from more than 80 options by Widodo and was chosen because it “reflects Indonesia’s geography and is iconic internationally,” the president said.

The new state capital law now provides a legal framework for Widodo’s ambitious $32.5-billion megaproject and stipulates how its development will be funded and governed. The state will shoulder 19 per cent of the total costs, with the rest coming from public-private partnerships and private investments.

“New center of economic gravity”                                 

“The new capital has a central function and is a symbol of the identity of the nation, as well as a new center of economic gravity,” Indonesia’s planning minister Suharso Monoarfa told parliament following the bill’s passage.

“The relocation of the capital city to Kalimantan is based on several considerations, regional advantages and welfare,” Monoarfa told Indonesia Parliament TV.

Sri Mulyani, Indonesia’s minister of finance, added that there would be five stages of development for the new capital city. The first stage is expected to begin in 2022 and run through 2024, with the full development expected to continue until 2045.

Conversion from jungle to urban area

Legislators have stressed the importance of a careful consideration of the development’s environmental impact in the jungled area. According to data from Indonesia’s National Planning and Development Agency, the total land area for the new capital city will be around 2,560 square kilometers, almost all of it converted from forest area.

Nusantara will span over parts of North Penjam Paser and Kutai Kartanegara regencies in East Kalimantan in the geographical center on Indonesia, some 2,000 kilometers north-east of the current capital Jakarta. It will be led by a chief authority whose position will be equivalent to a minister.

Reduce the burden on Jakarta

Under the project, Jakarta will remain the country’s commercial and financial center, but government administrative functions will move to the new capital.

The government hopes the relocation would move some of the country’s wealth and employment opportunities from Java island and reduce the burden on Jakarta, a city of 10.6 million in the central area and 31.2 million in the greater metropolitan area, which makes it one of the most populous urban agglomerations globally. Jakarta is notoriously congested, suffers regular flooding and is one of the fastest sinking cities in the world due to the over extraction of groundwater, which were some of the core motives to move the capital, apart from economic reallocation.



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[caption id="attachment_38096" align="alignleft" width="300"] The winning design for Nusantara, Indonesia's planned new capital on Borneo island[/caption] Indonesia’s parliament on January 18 finally passed a bill to relocate the nation’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,” a Javanese name for the Indonesian archipelago. The name had been selected from more than 80 options by Widodo and was chosen because it “reflects Indonesia’s geography and is iconic internationally,” the president said. The new state capital law now...

The winning design for Nusantara, Indonesia’s planned new capital on Borneo island

Indonesia’s parliament on January 18 finally passed a bill to relocate the nation’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,” a Javanese name for the Indonesian archipelago.

The name had been selected from more than 80 options by Widodo and was chosen because it “reflects Indonesia’s geography and is iconic internationally,” the president said.

The new state capital law now provides a legal framework for Widodo’s ambitious $32.5-billion megaproject and stipulates how its development will be funded and governed. The state will shoulder 19 per cent of the total costs, with the rest coming from public-private partnerships and private investments.

“New center of economic gravity”                                 

“The new capital has a central function and is a symbol of the identity of the nation, as well as a new center of economic gravity,” Indonesia’s planning minister Suharso Monoarfa told parliament following the bill’s passage.

“The relocation of the capital city to Kalimantan is based on several considerations, regional advantages and welfare,” Monoarfa told Indonesia Parliament TV.

Sri Mulyani, Indonesia’s minister of finance, added that there would be five stages of development for the new capital city. The first stage is expected to begin in 2022 and run through 2024, with the full development expected to continue until 2045.

Conversion from jungle to urban area

Legislators have stressed the importance of a careful consideration of the development’s environmental impact in the jungled area. According to data from Indonesia’s National Planning and Development Agency, the total land area for the new capital city will be around 2,560 square kilometers, almost all of it converted from forest area.

Nusantara will span over parts of North Penjam Paser and Kutai Kartanegara regencies in East Kalimantan in the geographical center on Indonesia, some 2,000 kilometers north-east of the current capital Jakarta. It will be led by a chief authority whose position will be equivalent to a minister.

Reduce the burden on Jakarta

Under the project, Jakarta will remain the country’s commercial and financial center, but government administrative functions will move to the new capital.

The government hopes the relocation would move some of the country’s wealth and employment opportunities from Java island and reduce the burden on Jakarta, a city of 10.6 million in the central area and 31.2 million in the greater metropolitan area, which makes it one of the most populous urban agglomerations globally. Jakarta is notoriously congested, suffers regular flooding and is one of the fastest sinking cities in the world due to the over extraction of groundwater, which were some of the core motives to move the capital, apart from economic reallocation.



Support ASEAN news

Investvine has been a consistent voice in ASEAN news for more than a decade. From breaking news to exclusive interviews with key ASEAN leaders, we have brought you factual and engaging reports – the stories that matter, free of charge.

Like many news organisations, we are striving to survive in an age of reduced advertising and biased journalism. Our mission is to rise above today’s challenges and chart tomorrow’s world with clear, dependable reporting.

Support us now with a donation of your choosing. Your contribution will help us shine a light on important ASEAN stories, reach more people and lift the manifold voices of this dynamic, influential region.

 

 

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