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Indonesia abandons Jakarta as capital, but the problems remain

1. What’s wrong with the current capital?

Jakarta is built on swampy marshland and, to put it bluntly, it slowly sinks into the sea. Due to the massive pumping of groundwater, the soil of the metropolis sinks by about 10 to 20 centimeters per year. Scientists fear that at the current rate, 95 percent of the north of the city will be under water by 2050.

This subsidence also makes the city increasingly vulnerable to flooding. During the rainy season (November to April), heavy rainfall regularly floods thousands of homes, businesses and roads. A year ago dozens were killed.

But there are more problems. For years now, the residents have been mad about the traffic, which comes to a standstill by default. The city is not designed for the growing number of inhabitants (now 11 million in the city and over 30 million in the entire urban area) who increasingly have their own car. Together with the heavy industry in the area, this ensures a dramatic air quality that is leads to millions of illnesses.


2. Where should the new city be located?

On the Indonesian part of the island of Borneo, which is called Kalimantan. On the east coast of that island, in the area between the cities of Balikpapan and Samarinda, a completely new city is to be built. The new name was revealed yesterday: Nusantara, which means archipelago (island group).

The costs for the government are estimated at 446 trillion rupiah, or more than 28 billion euros. The rest will have to come from companies and financiers, which should give a huge boost to Kalimantan’s underdeveloped economic development. Widodo also wants to get rid of the colonial past: Jakarta was then designated as ‘Batavia’ by the Netherlands as an administrative center.


3. Does that sound like a good plan?

Well, certainly not everyone is thrilled. Kalimantan has the oldest rainforests in the world. The tropical island is rich in many plants and protected species, including orangutans that live near the designated area. Environmental groups fear that the new construction will cause permanent damage to their habitat, forest fires and that increased shipping will be at the expense of fish species.

“History will repeat itself, especially if the government builds coal-fired power plants in East Kalimantan as planned,” wrote Greenpeace when announcing the new location in 2019. “Deforestation for mines can lead to flooding and reduce the supply of clean water, leading to shortages, as has happened in nearby Samarinda.”

There are also fears that only the wealthy in the country will benefit from the megaproject, such as speculators and large companies, while the local population will have to make way. At the same time, there are doubts as to whether the country, which does not have the best reputation for urban planning, can handle the construction of such a new city.


4. Who will actually live there?

While Jakarta remains the business center, Nusantara should become a “smart, modern and internationally recognized city” according to the government of President Joko Widodo. Including new buildings for all ministries, the presidential palace and housing for 900,000 to 1.5 million people, mainly government employees and their families.

This too has been criticized: while the problems in the sinking and congested Jakarta are not being solved, the government is spending astronomical amounts on the relocation of civil servants. Money that critics say should better go to coastal protection in Jakarta and the poorer segment of the population.

Due to the corona pandemic, the proportion of the population living below the poverty line has risen again up to more than 10 percent. That equates to more than 27 million people. There will be no place for them in the dreamed new capital. Just like for most residents of the sinking Jakarta.


5. When will the new capital be finished?

Today the Indonesian parliament will vote on the relocation of the capital. If a majority approves the plan, the first officials should move from Jakarta to Nusantara sometime in 2024. But then the city itself will not be finished. Planning Minister Bambang Brodjonegoro previously estimated that design and construction could take up to ten years in total.


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