The inevitability of capital relocation from Jakarta to Nusantara

The development disparity region-wise is another woe that the administration seeks to address through the exercise of capital relocation. Jakarta contributes to 59% of Indonesia’s Gross Domestic Product. In contrast, Kalimantan, six times bigger than Java island, is home to only 6% of the total population, with the second highest gross regional domestic product following Jakarta, according to The Road to Nusantara. East Kalimantan, with 3.7 million people, is about one-third of Jakarta’s population. In this context, the establishment of administrative convenience and the push for greater infrastructure development are paramount.

Nusantara embodies the concept of a ‘forest city’, which integrates humans and nature in a harmonious manner. It will be a sustainable city with a green cover of about 75%. It aims to strengthen Indonesia’s efforts to achieve sustainable development goals through sustainable means of urban expansion and growth in Nusantara, which will reduce emissions from transportation and land use.

As part of civilisational growth, the expansion of urban centres is a policy to accommodate the increasing pull of population and in-migration. The pull factors of Jakarta are exemplified by its political stability, better economic opportunities, and cultural richness. Its environmental concerns and regional economic disparity have been push factors for a capital city relocation. Jakarta has represented Indonesia's political identity in Southeast Asia and the world for generations. Perhaps the relocation should embark on a redefinition of its regional and global power, given its strengthening role in international politics in the Indo-Pacific region.

Nusantara also represents Indonesia’s hallmark of ‘unity in diversity’ (Bhinneka Tunggal Ika) due to its geostrategic location in the middle of the western and eastern regions. It is considered to serve the purpose of uniting ethnic and cultural diversity existing in thousands of islands. Nusantara represents Indonesia’s archipelago, which the government believes will reduce the gap between Java and other islands. Indonesia’s economic growth and development are heavily concentrated in Java, while the archipelago consists of more than 17,000 islands.

The new capital city can give Indonesia a path towards inclusive growth, removing the regional economic disparity between central and eastern Indonesia. It consists of new sustainable forest cities covering over 256,000 hectares of green areas, including protected areas and agricultural areas. The cultivation areas consist of agricultural areas and well-defined populated areas with roads, public spaces, industrial areas, office areas, residential areas and security areas. Protecting agricultural land is the top priority of the government’s plan for the new IKN. The government will incorporate several issues of city management in its urban planning: pressure on land, water and resource management, environmental concerns, migration patterns, local concerns, and cultural changes.

The political consensus on the IKN relocation is crucial for developing Kalimantan as the new capital. It is expected to be completed by 2045, while it involves an enormous task to relocate about 250,000 construction workers, civil servants and their families in 2024. Other in-migration include academics, researchers and students. Major government ministries, including the supreme court, foreign affairs, defence, and home affairs, will be moved to the new capital in 2024, while others will be relocated by 2027. The IKN law of January 2022 provides the legal framework, authority, and certainty for the development of Kalimantan as the new capital. It achieved a political consensus of all political parties.

Jakarta will remain a cultural and economic centre. Its historicity, infrastructure, and public facilities will remain a special area and continue to promote tourism. Thus, it will not be abandoned. The IKN relocation is essential for Indonesia’s future, even at the cost of leaving behind Jakarta and its political significance. Moreover, the establishment of the Nusantara capital city is a strong political move by a rising power seeking to set a new political legacy. Countries like Australia, Brazil, Kazakhstan, Malaysia, and Pakistan previously underwent similar capital relocation.

The article is authored by Mehdi Hussain, former assistant professor, Political Science, Kirori Mal College, University of Delhi.