Why is Indonesia moving its Capital from Jakarta to Borneo?

Indonesia has planned to move its capital from Jakarta to Borneo. Indonesia’s President Mr. Widodo has planned to establish the city of “Nusantara”, which is an old Javanese term, meaning “archipelago”. This will include constructing government buildings and housing from scratch. The new capital city will apply the “forest city” concept, with 65% of the area being reforested.

Read more about this development in this article. This topic is relevant for the UPSC current affairs segment.

Why is Indonesia building a New Capital City?

• The reasons are varied such as congestion, pollution, earthquake vulnerability and the fact that the current capital is sinking due to sea level rise (climate change). 
  • Congestion: Jakarta houses a huge crowd. It is home to about 10 million people and three times that number in the greater metropolitan area. 
  • Sinking due to sea level rise and uncontrolled groundwater extraction: Indonesia is an island country. With rapid climate change and sea level rise, many of its islands are vulnerable to sinking. Jakarta has been described as the world’s most rapidly sinking city. If the current rate of sinking continues, the estimates are that one-third of the city could be submerged by 2050. The main cause is uncontrolled groundwater extraction, but it has become more rapid due to the rising Java Sea due to climate change.
  • Pollution issues: Its air and groundwater are heavily polluted. Flood is a regular phenomenon here which clogs infrastructure facilities and day-to-day activity. It is estimated that congestion costs the economy $4.5 billion a year.
• The plan is to build a “sustainable forest city” which would keep the environment as its priority while developing. 
• Indonesia also aims to be carbon neutral by 2045.

Also read: Urban Planning and Development in India

Issues with the new capital construction:

• Many environmental researchers have shown concern as infrastructure development and new settlement will lead to massive deforestation.
• These islands are diverse in flora and fauna and act as habitats for endangered species such as orangutans. Building a sprawling 256,000-hectare city down in Borneo’s East Kalimantan province, which is home to orangutans, leopards, and a wide array of other wildlife can have crucial environmental damage. Deforestation and human settlement can threaten the existence of the species. 
• It also homes many indigenous communities, which can become vulnerable to new cultures and interventions. At least five villages with more than 100 Indigenous Balik people are relocating because of the construction. With more requirements for expansion, more tribal villages/indigenous communities will need to relocate.
• Though the government claims that the new capital has received support from local community leaders, and compensation and land have been provided to the communities, the vulnerability of losing indigenous culture cannot be denied.

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