HomeInternational NewsIndonesia's New Capital Nusantara to Be Inaugurated on Independence Day

Indonesia’s New Capital Nusantara to Be Inaugurated on Independence Day

Medan, Indonesia – Nusantara, Indonesia’s upcoming capital, is set to be inaugurated on the country’s Independence Day this Saturday. This move aims to replace Jakarta, which has been the capital since Indonesia declared independence from the Netherlands in 1945. Jakarta, a bustling metropolis with a population of at least 11 million, struggles with some of the world’s worst traffic congestion, thick smog, and overpopulation. The city is also sinking due to unregulated groundwater extraction, with Indonesia’s National Research and Innovation Agency (Badan Riset dan Inovasi Nasional) warning that approximately 25% of the city could be submerged by 2050.

President Joko Widodo, popularly known as Jokowi, first announced his surprising plan to relocate the capital to the jungles of East Kalimantan on the island of Borneo during his annual address to the nation on August 16, 2019. “A capital city is not only a symbol of national identity but also a representation of the nation’s progress,” Jokowi stated. “This is for the realization of economic equality and justice.”

However, some have questioned this grand project, known as Ibu Kota Negara (IKN), from the outset. Ian Wilson, a lecturer in Politics and Security Studies at Murdoch University in Australia, pointed out that the project reflects the characteristics of the Jokowi administration, including an increasingly autocratic government that is disconnected from popular sovereignty.

The government plans to move 20,000 public employees from Jakarta to Nusantara. An initial group of 12,000 employees from 38 government ministries is expected to relocate by the end of December 2024. To accommodate these new workers, 47 apartment towers are under construction, with 12 already completed last month.

If all goes according to plan, approximately 1.9 million people are expected to reside in Nusantara by 2045, which is more than the population of East Kalimantan’s provincial capital, Samarinda. Siwage Dharma Negara, a senior researcher at the ISEAS-Yusof Ishak Institute in Singapore, indicated that the purpose of Nusantara is “a long-term project to address development disparities and issues in Jakarta.”

The timeline has always been a critical concern. “The government has argued that if not now, then when? If delayed, it may never happen,” he explained. “For those who disagree, the timing is considered unfortunate, as the economy is not performing well.”

Nusantara requires massive financial investments amounting to $35 billion, according to the government. The World Bank projected in June that Indonesia’s growth will remain robust despite rising prices and geopolitical uncertainties, with an average GDP growth of 5.1% per year between 2024 and 2026. However, economists warn of signs of a recession in the global economy that could impact Indonesia.

According to the government, agreements have been reached with two Singaporean companies to participate in the development of renewable energy and waste management in Nusantara.

While Jokowi has remained optimistic despite recent leadership changes in the project, the next phases of one of the largest infrastructure projects in Indonesian history will now fall into the hands of incoming President Prabowo Subianto, who will take on the task at the end of October. It remains to be seen how this ambitious project will unfold and affect the country’s future.

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