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India AI Superpower Potential

September 19, 2025 Victoria Sterling Business
News Context
At a glance
  • Nusantara,meaning "archipelago" in Indonesian and Sanskrit,is teh planned new capital city of Indonesia,intended to replace Jakarta.
  • Jakarta, a megacity of over 10 million peopel, faces a multitude of problems.
  • The chosen location for Nusantara is in the East Kalimantan province of Borneo, approximately 2,000 kilometers⁣ northeast of Jakarta.This area was selected for several reasons: it's considered less...
Original source: economist.com

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Indonesia’s Nusantara: A New Capital City ⁣Rises

Table of Contents

  • Indonesia’s Nusantara: A New Capital City ⁣Rises
    • What is Nusantara?
    • Why Move the Capital? Jakarta’s Challenges
    • Location, Location, ‍Location: East Kalimantan
      • Environmental considerations
    • A City ⁣Unlike Any Other: Design and Sustainability

What is Nusantara?

Nusantara,meaning “archipelago” in Indonesian and Sanskrit,is teh planned new capital city of Indonesia,intended to replace Jakarta. Officially designated in January 2022, construction began in 2023, with the frist government employees ⁤expected to relocate in 2024. The project represents a monumental undertaking, ⁤aiming to address Jakarta’s chronic issues of overcrowding, pollution, and sinking land, while⁢ also redistributing economic growth ⁣more evenly across the archipelago.

What: Indonesia’s new capital city.

Where: East Kalimantan province, Borneo.
When: Officially designated January 2022; construction ⁤began 2023; ‍initial relocation 2024.

Why it Matters: Addresses Jakarta’s urban challenges and aims for more balanced regional⁤ development.
What’s Next: ‍Continued construction, phased relocation of government ⁣functions, ‍and development of supporting infrastructure.

Why Move the Capital? Jakarta’s Challenges

Jakarta, a megacity of over 10 million peopel, faces a multitude of problems. It’s one of the fastest-sinking cities in the world, with parts subsiding at a rate of over 10 centimeters per year due to excessive groundwater extraction. Severe traffic congestion costs the city an estimated $6.5 billion annually in lost productivity. Air and water pollution are also significant concerns,impacting public health and quality ‍of⁤ life. ⁣The move⁢ to Nusantara is, therefore, framed ‍as a necessary‍ step to ensure Indonesia’s long-term sustainability and economic prosperity.

Jakarta Subsidence
Jakarta is sinking at an alarming ⁢rate, a key driver behind the decision to relocate the capital.

Location, Location, ‍Location: East Kalimantan

The chosen location for Nusantara is in the East Kalimantan province of Borneo, approximately 2,000 kilometers⁣ northeast of Jakarta.This area was selected for several reasons: it’s considered less prone to natural disasters than other parts of Indonesia, it has existing infrastructure, and it’s strategically located to connect the western and eastern parts of the country. The site spans approximately 56,180 hectares (138,800 acres), and the initial plan envisions a city designed for 1.9 million people.

Environmental considerations

The selection of East⁢ Kalimantan isn’t without environmental concerns. Borneo is home to significant rainforests and biodiversity, including endangered species like orangutans. The Indonesian government has pledged to minimize environmental impact through lasting urban planning,reforestation efforts,and strict environmental regulations. However, environmental groups remain skeptical, emphasizing‍ the⁤ need⁢ for transparent monitoring and enforcement.

A City ⁣Unlike Any Other: Design and Sustainability

Nusantara is being designed as a “smart city” with a focus on sustainability and technological innovation. Key features include:

  • Green ⁣Infrastructure: Extensive green spaces,urban forests,and water management systems.
  • Smart Transportation: A extensive public transportation network,prioritizing electric vehicles and pedestrian-amiable zones.
  • Renewable Energy: Reliance on renewable energy sources,⁣ such ‍as solar and hydropower.
  • Digital Governance: Utilizing technology to improve public services and citizen engagement.

The city’s design aims to be compact and walkable,reducing reliance on private vehicles. Buildings will be constructed with sustainable materials and energy-efficient technologies. The goal is ⁢to create a city that ⁢is not only environmentally friendly but also resilient to climate change.

The ambition behind Nusantara is truly remarkable. However, the success of this project hinges on effective implementation and a genuine commitment to sustainability. Simply building a technologically advanced city isn’t enough; it must be integrated with the surrounding environment and⁣ benefit the local‍ communities. The potential for displacement of indigenous populations and the risk of deforestation are significant challenges that must be addressed

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