Indonesia is Constructing Nusantara: Jakarta, the capital and main metropolitan center of Indonesia, is located on the northwest coast of Java, where the Ciliwung River meets the sea. With around 40% of its landmass currently below sea level, Jakarta, home to over 10.6 million people within its city limits and about 30 million in its metropolitan area, is urgently facing the problem of sinking.
In Indonesia, a huge change is happening. The capital city, Jakarta, is struggling with being flooded and sinking. So, the government is building Nusantara, a new capital, to solve this issue. This project will cost around $35 billion. It’s a big step that will shape the country’s future in significant ways.
Jakarta, on the northwest coast of Java, has been the center of Indonesia for governance and business. With over 10.6 million living in the city and 30 million in the surrounding area, it’s a huge, busy place. Due to fast growth, almost 40% of Jakarta is now lower than sea level. This is why Jakarta is sinking.
The government is moving the capital to Nusantara, a new city being built on Borneo’s east coast. It’s about 870 miles from Jakarta. This huge project plans to finish by 2045. It will help solve Jakarta’s sinking problem and offer a new place for the country’s leadership.
Key Points
- Indonesia is building a new capital city, Nusantara, at an estimated cost of $35 billion.
- Jakarta, the current capital, is facing a sinking crisis, with nearly 40% of its landmass now below sea level.
- The new capital, Nusantara, is being constructed on the eastern coast of Borneo, about 870 miles from Jakarta.
- Nusantara is expected to be completed by 2045 and will serve as a strategic move for governance in the diverse, tropical island nation of Indonesia.
- Indonesia aims to make Nusantara a 100% green city, powered entirely by renewable energy by 2045.
Indonesia is working hard to move its capital from Jakarta to the brand-new Nusantara metropolis. The cause is that one of the largest cities in the world, Jakarta, is sinking.
Jakarta, the capital and main metropolitan center of Indonesia, is located on the northwest coast of Java, where the Ciliwung River meets the sea. With around 40% of its landmass currently below sea level, Jakarta, home to over 10.6 million people within its city limits and about 30 million in its metropolitan area, is urgently facing the problem of sinking.
The Sinking Crisis of Jakarta
Jakarta, Indonesia’s current capital, is in big trouble because it’s sinking fast. North Jakarta has dropped by 8.2 feet in the last ten years. Some parts go down by over 11 inches each year. Nearly half of the city is now below sea level.
Causes of Sinking
The main cause is too much groundwater being taken out. Since the city grew so quickly, its water supply system can’t keep up. People and businesses have been digging their own wells, making the ground weak.
Impacts and Challenges
This sinking is causing a lot of problems. It’s breaking roads, bridges, and buildings. Plus, when it rains, flooding gets worse. Fixing all this is costing more and more. The fishing industry and other businesses are also being hurt.
Introducing Nusantara: Indonesia’s New Capital
Location and Site Selection
The Indonesian government picked the eastern coast of Borneo for the new capital, nusantara new capital. They chose this borneo location because it’s near the sea. It also has a lower risk of natural disasters like earthquakes, tsunamis, or volcanoes.
Vision for a Sustainable City
President Joko “Jokowi” Widodo sees Nusantara as a key to a new era for Indonesia’s economy. This era will be defined by sustainable city projects and businesses that help the world fight climate change. The plan for Nusantara fits with Indonesia’s big goal: no carbon emissions and using 100% clean energy by 2060. To get there, they will keep 70% of the city green, plant lots of trees, and use high-tech ways to be a smart eco-friendly city.
Nusantara: Economic Transformation
Indonesia is recognized in the G20 as the 16th biggest global economy. It contributes over a third of ASEAN’s $3.6 trillion economy. By 2028, its GDP is expected to jump by over 50%, climbing past $2 trillion. This growth highlights Indonesia’s growing economic influence.
Indonesia’s Rising Economic Influence
President Joko “Jokowi” Widodo sees Nusantara as the heart of change. For him, it’s about more than just administration. It’s a place driving economic vitality, embracing a green economy, advanced tech, and intellectual progress.
Green and Smart City Initiatives
In Nusantara, a 50-megawatt solar plant is being built. The government aims to have only electric vehicles there by 2030. They’re also making it a smart city as part of a bigger plan for 100 Smart Cities in Indonesia. All these moves support the goal of reaching net-zero carbon emissions by 2060.
Indonesia Nusantara: A Pioneering Move
Indonesia is moving its capital to Nusantara, which is a huge and important change. It could show the world how to grow while taking care of culture and the earth. The plan is to welcome private money for building things and services. This will help everyone earn more money and do better.
Moving the capital, though, is not easy. Jakarta is still very important, but it faces many problems with the environment. The key to success is making clear decisions that help all people. The government needs to work openly and talk with the community to make this happen.
A Pioneering Move
Changing to Nusantara is like stepping into a new tomorrow. It will show how we can be modern and friendly to our planet. This big move could be a role model for all nations, proving we can build smart and green cities. It’s like setting a cool trend for others to follow.
| Statistic | Value |
|---|---|
| Projected Cost of Nusantara Capital City Construction | $35 billion |
| Foreign Investor Tax Exemption | Exempt from foreign capital ownership restrictions when collaborating with micro, small, and medium-scale enterprises or cooperatives |
| Land Rights Periods | Right to Cultivate: 95 yearsRight to Build: 80 yearsRight to Use: 80 years |
| Income Tax Reductions | Multiple benefits for various sectors and activities, including gross income reductions for educational activities and research and development |
| VAT Exemptions | Exemptions for Value Added Tax (VAT), Sales Tax on Luxurious Goods (STLG), and customs duties for specific categories of goods and services |
| Micro, Small, and Medium Businesses Income Tax | 0% income tax rate for products exceeding a certain investment amount, up to a specified limit |
| Special IKN Tax Facilities | Tax and earnings reductions or exemptions to attract investment and create an investor-friendly environment |
| Land and Location Facilitation | The IKN authority will facilitate access to suitable sites in Nusantara |
| Land Rights Extension and Renewal | Subject to agreement between the IKN authority and business actors, and a joint evaluation by the IKN authority and the Ministry of Agrarian Affairs and Spatial Planning |
Show a bustling construction site in Indonesia, with cranes towering over workers as they lay the foundation for the new Nusantara capital. The ground is muddy and the sky is gray, but there is a sense of energy and determination in the air. In the background, Jakarta can be seen sinking into the sea, emphasizing the urgency of this pioneering move by Indonesia.
Relocation Timeline and Phases
In July 2022, the building of Nusantara, Indonesia’s new capital, started. President Joko “Jokowi” Widodo sent about 100,000 workers for the kick-off. By now, the worker count has grown to between 150,000 and 200,000 as the project picked up speed.
In this first step, they’re enriching and foresting the area. They’re also working on basic infrastructure, creating green and blue spaces, and building government areas, offices, and homes.
Phase 1: Initial Construction
The Nusantara project is setting up key roads and buildings first. This setup will help move government parts to the new area. Around October 2024, 6,000 civil servants should be in Nusantara. This number will double to 12,000 before 2025 as things speed up.
Phase 2: Educational and Innovation Hubs
Nusantara will not only get basic buildings but also places for learning and new ideas. These centers will draw talented people, boost studies, and help new knowledge-based businesses grow. The aim is to make Nusantara a top spot for learning and innovation. This will help Indonesia’s economy in the long run.
Environmental Stewardship and Sustainability
President Joko “Jokowi” Widodo has a big dream for Nusantara, Indonesia’s upcoming capital. He sees it as a place that values the earth and its future. Already, plans are in motion to restore the area’s forests. This move is important, as it supports Indonesia’s dream of being a “forest city.” This city will be in the middle of the Heart of Borneo, a key zone for creating the world’s oxygen. Studies show the way to bring nature back to life. They suggest restoring the land to its original lush greenery.
Reforestation and Environmental Recovery
Nusantara is all about bringing nature back to its former glory. Right now, much of the land is covered in new growth that’s starting to look like a real forest again. This regrown area represents just 16 percent of the 256,142 hectares in Nusantara. The goal is to fix this. The plan is to have at least 120 thousand hectares back as a healthy forest by 2045. The region has a careful plan to keep it rich in life. This includes protecting wildlife, keeping wetlands safe, and making sure the whole ecosystem stays balanced.
Renewable Energy and Net-Zero Emissions
Indonesia aims to hit net-zero carbon emissions by 2060. The plan is for Nusantara to be a big part of this green future. Already, a 50-megawatt solar power plant is in the works. And pretty soon, only electric cars will be allowed in the area. The project is also setting up rules to cut down on how much electricity and water gets wasted. These moves are all part of the push to make Nusantara a model of green living.
Challenges and Opportunities
Moving to Nusantara, Indonesia’s new $35 billion capital, brings many challenges and chances. The government is putting a lot into this big project. Yet, they need more money and investment to make it all happen.
Financing and Investment
The government has promised only 20% of the needed $35 billion for Nusantara. This leaves a big gap in funding. Finding more money from both public and private sectors is tough. When Japan’s SoftBank pulled out, it showed the government still needs a strong money plan.
Community Engagement and Transparency
Making sure people are involved and the process is clear is key for Nusantara’s success. The move and new projects will affect communities a lot. Talking with them, making decisions together, and solving their worries will help gain their trust and support.
Indonesia is building a new capital Nusantara
The Indonesian government has come up with a plan to move the capital to Nusantara, a new metropolis that is supposedly being built on Borneo’s eastern coast, some 870 miles north of Jakarta, to address this difficulty. If stories are to be believed, this massive project—which is expected to come with a price tag of over $35 billion and be finished by 2045—aims to both strategically advance governance and lessen the impact of Jakarta’s sinking.
This choice is in line with a historical pattern where capital cities have been moved for a variety of reasons in nations like Nigeria and Brazil. Jakarta’s situation is distinct, though, as it is the first time that the migration of capital has been directly impacted by the climate catastrophe. The government has to act quickly as rising sea levels and unsustainable groundwater exploitation have made Jakarta sink faster.
This, East Kalimantan was chosen as the new location for the capital relocation plan by Indonesian President Joko Widodo in August 2019 because of its close proximity to the sea and reduced vulnerability to natural disasters such as earthquakes, volcanic eruptions, and tsunamis.
Jakarta, meanwhile, is suffering from the effects of its sinking status; this is demonstrated by the fate of iconic buildings like the mosque that is pictured, which is submerged by the rising sea levels.
Environmental scientists, meantime, warn of the grave prospect that, if subsidence continues unchecked, a third of Jakarta may be underwater by 2050. In response to pressing concerns, the Indonesian government is allocating substantial funds for flood control measures in Jakarta, realizing the gravity of the situation and the imperative of protecting its people and cultural legacy.
Conclusion
Indonesia is making a big change by moving its capital. It’s going from Jakarta to a new city called Nusantara. This move is a bold step against Jakarta’s sinking crisis. The new city will be on the east coast of Borneo.
With a budget of $35 billion, creating Nusantara is a major effort. It shows Indonesia’s focus on the environment. By using smart city tech and caring for nature, the country aims to be a world leader in sustainable development.
This effort doesn’t only aim at moving the capital. It also wants to deal with climate change. The approach of building a new city, focused on green, renewable energy, sets an example. Indonesia hopes Nusantara will inspire others, showing how to face up to big problems. By fighting Jakarta’s sinking crisis, Indonesia is showing its commitment to a greener future.
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