Indonesia's new capital - city of the future

Indonesia is planning to build a new capital city in East Kalimantan on the island of Borneo, called Nusantara. The plan was announced by the Indonesian government in 2020, with the aim of moving the capital Jakarta to a new location to reduce urban congestion and develop the economy of eastern Indonesia.

The project is estimated to cost 34 billion USD and is expected to be completed in 2045. Mr. Bambang Susantono - the person in charge of the project said that Nusantara will be a livable and lovely place.

Nusantara is being built to ease the pressure on Jakarta, the capital city currently plagued by pollution, congestion and the world's fastest-sinking city. Authorities have touted the new Indonesian capital as a model for sustainable and inclusive development. But the project has also been controversial, raising concerns about its impact on the environment and local communities.

Indonesia plans to spend 34 billion USD to build a new capital.

Engineer Bambang Susantono - former acting Minister of Transport of Indonesia was appointed as head of the Nusantara Capital Authority in March 2022. According to Mr. Bambang, the total area of ​​Nusantara will be 256,000 hectares, about 3.5 times larger than Singapore, but only 25% will be built as urban areas, the remaining 75% will be green, of which 65% will be regenerated tropical forest. We hope that the sustainable forest city will become at least carbon neutral by 2045.

Although some environmental groups remain concerned about the project, Mr. Bambang explained that illegal logging is a thing of the past, and the city of the future will be green, smart and sustainable. 'We know the current world situation is not bright because we are in the recovery phase after the Covid-19 pandemic. Besides, there is the situation of climate change and conflicts in some places. But despite all that, there are still investors who want to put money into some projects that can be guaranteed in the next 10-15 years,' Mr. Bambang said about the financial issue. It is known that this is an investment project combining both public and private investment . Mr. Bambang said that this is a good project to invest in because it will be a world-class city. It is not only for Indonesia but also meets international standards, especially in terms of ESG (environment, society and governance).

After President Joko Widodo personally explored the market late last year, there were many international investors from the UAE, Saudi Arabia, China, South Korea and the US who showed interest. 'Some are quite detailed, of course they have to study to see the environment here. Hopefully next quarter we will see who really wants to invest, we are opening opportunities for them' - Mr. Bambang Susantono said.

Regarding the construction progress, the person in charge of the project said that by 2024, there will be a display area of ​​900 - 1,000 hectares. In there, they will prove that they have a complete ecosystem, a city that can operate itself. 'If we talk about ownership, it will be a sustainable factor regardless of political conditions. If we talk about a livable and lovely city, you can see good air quality. We will have a city where you can reach all destinations within 10 minutes and walk comfortably here. This will be a place where people like to live, work, study and rest. Some people ask me, what will the city be like? Will it be like the science fiction movie Avatar? You can dream about it. It will be a smart, green, integrated and sustainable city for the future' - Mr. Bambang affirmed.

Indonesia's new capital Nusantara 'is not only a symbol of our national identity but also represents the development of the nation. It is for the purpose of realizing a fair and just economy' - Indonesian President Joko Widodo said in August 2019 when announcing the construction site of the new capital.

Indonesia plans to move 1.9 million people to Nusantara by 2045, with some civil servants moving in as early as 2024. The government hopes Nusantara will create more than 4.8 million jobs in sectors such as technology, petrochemicals and renewable energy. For President Joko Widodo himself, Nusantara is a chance to make history.