Explained: Why Indonesia

is moving its capital

Headline : Explained: Why Indonesia is moving its capital, and what
next for Jakarta
Section : International Relation
Index

• Why Indonesia is moving its capital, and what next for Jakarta?
• Need of changing capital:
• Why is Jakarta sinking?
• Relocation of Capital
• About: Kalimantan, Why East Kalimantan?
• What next?
• Thank You
Why Indonesia is moving its capital, and what
next for Jakarta
• Indonesia has announced plans to move its capital from the climate-threatened megalopolis of
Jakarta to the sparsely populated island of Borneo, which is home to some of the world’s
greatest tropical rainforests.
• Need of changing capital:
• Jakarta is an archetypical Asian mega-city with 10 million people, or 30 million including those
in its greater metropolitan area.
• It is prone to earthquakes and flooding , with highly contaminated ground water and rivers.
• Parts of the Jakarta are sinking by as much as 25cm (10in) a year and almost half now sits
below sea level.
• The dire problems of pollution and traffic congestion makes the coastal city extremely
vulnerable to rising sea levels.
• The relocation is meant to reduce the burden on Jakarta, which has been facing problems
such as poor quality air, traffic gridlocks and is particularly prone to flooding.
Why is Jakarta sinking?

• 40 percent of Jakarta’s land falls below the sea level since most of the city’s
mainland spans across an alluvial lowland with an elevation of about 7m from
the sea.
• Due to relentless construction in the city, the water is not able to seep into the
ground in many areas, leading to increased run-off.
• Because Jakarta was built on a marsh, already a few metres below sea level, it
is especially prone to being submerged.
• Due to climate change, the water levels in the Java Sea are rising and weather
events are becoming more extreme.
• The city is rapidly sinking due to uncontrolled extraction of ground
water (because Jakarta does not have adequate piped water).
• Essentially, it is a combination of climate change and heavy congestion in the
city that continues to bury the city, about 25 cm into the ground every year.
Relocation of Capital

• Indonesia’s new capital, which hasn’t been named yet, will sit on a 1,80,000
hectare area, which is about three times the size of Jakarta.
• The cost of this capital relocation is expected to be over US $32.7 billion.
• The relocation aims to ease the pressure on Jakarta by moving its
administrative functions about 1,000km to Kalimantan, which is the Indonesian
portion of the island of Borneo (which is also shared with Malaysia and Brunei).
• The new capital city (which has not yet been named) will be in the middle of
the vast archipelago nation and already has relatively complete infrastructure
because it is near the cities of Balikpapan and Samarinda.
• Note: Several President’s before Widodo have made these suggestions in the
past. Indonesia's founding father and first president, Sukarno, also once planned
to relocate the capital to Palangkaraya in Central Kalimantan province
About: Kalimantan

• Kalimantan is in Indonesia’s section of Borneo ( the island it shares with

Malaysia and Brunei ).
• It was once almost completely covered by rainforests, but illegal logging has
removed many of its original growth.
• It is home to only 3.5 million people and is surrounded by Kutai National Park,
known for orangutans and other primates and mammals.
• Why East Kalimantan?
• Intense studies over the past three years had resulted in the choice of the
location on the eastern side of Borneo island.
• The East Kalimantan does not have a history of natural disasters.
• Furthermore, the government of Indonesia already owns vast amounts of land
in the area, the terrain is flat and water resources are sufficient.
What next?

• The National Development Planning Agency (Bappenas) will prepare a

draft bill which will detail the process of relocation of the capital, the
planning of which is expected to be complete by the end of 2020.
• The construction of the capital will take over two-three years and the
government institutions will start moving out of Jakarta between 2023
and 2024.
• The new capital will act as the centre of the government, whereas
Jakarta will continue to be Indonesia’s business and financial centre.
• The relocation will be funded partly by the government (19 percent) and
partly through private investments and public-private partnerships.
Thank You

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