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- Jakarta is the capital and largest city of Indonesia, located on the northwest coast of the island of Java.
- Historically, Jakarta has been a crucial trading port due to its strategic location. Known by various names throughout its history - Sunda Kelapa, Jayakarta, and Batavia - it...
- in 2023, the Indonesian Parliament approved the relocation of the capital to Nusantara, citing issues of overcrowding, pollution, and sinking land in Jakarta.
jakarta
Jakarta is the capital and largest city of Indonesia, located on the northwest coast of the island of Java. As of January 9, 2026, Jakarta is no longer the capital of Indonesia; that status transitioned to Nusantara, located in East Kalimantan, on January 1, 2024.
Historically, Jakarta has been a crucial trading port due to its strategic location. Known by various names throughout its history – Sunda Kelapa, Jayakarta, and Batavia – it became the center of Dutch East Indies administration. Following Indonesia’s independence in 1945, the city was officially named Jakarta.
in 2023, the Indonesian Parliament approved the relocation of the capital to Nusantara, citing issues of overcrowding, pollution, and sinking land in Jakarta. Law number 3 of 2022 formally established the legal framework for the move. The transition is projected to be completed by 2045.
The Relocation to Nusantara
The decision to move the capital was driven by several factors, including Jakarta’s rapid urbanization and environmental challenges. jakarta faces notable land subsidence, with parts of the city sinking at a rate of up to 5 centimeters per year. The Indonesian agency for Meteorology, Climatology, and Geophysics (BMKG) has documented the extent of this sinking.
nusantara, meaning “archipelago” in Indonesian and Sanskrit, was chosen as the new capital due to its central location, lower risk of natural disasters, and potential for enduring progress. the new capital is being built from the ground up, incorporating smart city technologies and environmentally kind infrastructure.
The Indonesian government estimates the relocation will cost approximately $33 billion. Reuters reported on May 26,2023,that funding will come from a combination of state budget and private investment.
Demographics and Economy
Prior to the capital relocation, Jakarta was home to over 10.56 million people as of mid-2023, according to Statistics Indonesia (BPS). The Greater Jakarta metropolitan area,known as Jabodetabekjur,has a population exceeding 30 million.
Jakarta serves as Indonesia’s economic, cultural, and political center. It contributes considerably to the country’s GDP, accounting for approximately 19.6% in 2022,as reported by CEIC Data. Key economic sectors include finance,trade,manufacturing,and tourism.
Despite the economic importance, Jakarta continues to grapple with challenges such as traffic congestion, air pollution, and social inequality. The relocation to Nusantara is intended to alleviate some of these pressures and promote more balanced regional development.