Indonesia’s parliament officially revokes Jakarta’s status as capital and changes special administrative region’s new capital to Nusantara – Hakkanews
Indonesia’s parliament has officially changed Jakarta’s status. On the 19th, they passed a bill to designate Jakarta as a special region, moving the capital to Nusantara in East Kalimantan. Kadir, the deputy speaker, confirmed that Jakarta will no longer be the capital.
Interior Minister Karnavian stated that Jakarta will still be important for economic and cultural activities but will not serve as the capital. The new capital, Nusantara, is under construction, with planned moves for civil servants starting in 2025.
The decision to move the capital arose from Jakarta’s issues, including a population exceeding 10 million and severe groundwater depletion. About 60% of Indonesia’s population and economic activities are based on Java, where Jakarta is located. The government aims for balanced regional development by relocating the capital, hoping to address environmental and social issues.
Construction of Nusantara began in mid-2022 and should finish by 2045, with an expected population of over 2 million. The Indonesian government intends to achieve developed nation status by 2045, fostering clean technology, medicine, sustainable agriculture, and low-carbon energy among other industries.
What are the key challenges Jakarta faces that led to the decision to relocate Indonesia’s capital to Nusantara?
Interview with Dr. Rina Setiawan, Urban Development Specialist
News Directory 3: Thank you for joining us, Dr. Setiawan. Following the recent decision by Indonesia’s parliament to reclassify Jakarta and designate Nusantara as the new capital, what are the implications of this major shift for the country?
Dr. Rina Setiawan: Thank you for having me. The decision to move the capital from Jakarta to Nusantara is a bold step aimed at addressing the severe challenges that Jakarta faces, such as overpopulation—exceeding 10 million residents—and critical environmental issues including groundwater depletion. This shift will allow for a more balanced distribution of population and economic activity across the nation, particularly easing the intense pressure on Java.
News Directory 3: The government plans for civil servants to relocate by 2025, and Nusantara is currently under construction. What do you anticipate the impact of this relocation on Jakarta’s economy and culture?
Dr. Rina Setiawan: While Jakarta will retain its role as an economic and cultural hub, being designated a special region means it will no longer hold the political title of capital. This could lead to a gradual decentralization of some economic activities. However, given that about 60% of Indonesia’s population and economic functions currently reside on Java, we expect that Jakarta will continue to attract investment and talent, albeit in a different capacity once Nusantara becomes fully operational.
News Directory 3: The ambitious timeline for Nusantara aims for completion by 2045 with an expected population of over 2 million. In your view, how realistic is this projection?
Dr. Rina Setiawan: The timeline is indeed ambitious, but achievable if the government maintains strong commitment and adequate funding. Focusing on sustainable urban planning and green technologies will be crucial. The government aims to position Indonesia as a developed nation by 2045, which includes embracing clean technology and sustainable practices. Nusantara has the potential to showcase these ideals, but it requires strategic planning and investment at every level.
News Directory 3: There are concerns about foreign investments, particularly from China, influencing the new capital’s development. How might this play out?
Dr. Rina Setiawan: Foreign investment is essential for fostering growth, but vigilance is necessary to ensure it aligns with Indonesia’s national interests. While Chinese investments could boost infrastructure development in Nusantara, there’s fear that excessive influence may compromise Indonesia’s sovereignty—turning Nusantara into a “new Beijing” as some critics fear. The government must carefully navigate these investments to reap benefits without losing local autonomy and prioritizing the needs of its citizens.
News Directory 3: Lastly, what do you believe is the most significant opportunity presented by this new capital relocation?
Dr. Rina Setiawan: The most significant opportunity lies in the potential for creating a city built on sustainable principles from the ground up. The government can enshrine eco-friendly practices and advanced technologies into Nusantara’s development. This is a chance to redefine urban living in Indonesia, addressing not just current crises but also setting a global standard for new cities in developing nations. It’s an opportunity to pivot towards a model that emphasizes balance, equality, and sustainability.
News Directory 3: Thank you, Dr. Setiawan, for your insights on such a transformative period for Indonesia. We appreciate your time.
Dr. Rina Setiawan: Thank you for having me.
Concerns exist over foreign investment in the new capital, particularly from China. China has previously invested in Indonesia, and some fear this could lead to Nusantara becoming a “new Beijing.” Critics argue that Chinese investment mainly serves China’s interests.
Indonesia is an archipelagic nation in Southeast Asia, with over 270 million people, making it the fourth most populous country. It is the world’s largest Muslim nation and functions as a republic.