First Independence Day Celebrated in Indonesia’s Controversial New Capital

Indonesia made a significant stride in its plan to transform not just its capital city but the nation itself during the formal celebrations of independence in Nusantara on Borneo Island.

However, the ambitious project, still in its infancy, faces challenges such as a lack of interest from foreign investors, missed deadlines, disputes over land ownership, and allegations of environmental harm.

The current capital, Jakarta, is sinking rapidly due to its geographical location, posing significant challenges such as frequent flooding. This prompted Indonesia to envision a new, more resilient capital city: Nusantara in East Kalimantan, set to symbolize the country’s transformation into a fully developed nation by 2045.

Nusantara is not just a regular city; it aims to incorporate smart city innovations, cutting-edge technology, and sustainable development practices for a more inclusive future.

Outgoing President Joko Widodo views the new capital as a representation of a fresh work ethic, mindset, and a green economy.

Modeled after the capitals of Brazil and Australia, Widodo aims to reduce regional inequality by substituting Jakarta with Nusantara.

Nusantara is designed to be a green, pedestrian, and bike-friendly city, with abundant green spaces and walkable areas around government buildings.

The city is also committed to low-carbon transportation and achieving net zero emissions by 2045 through initiatives like allowing only electric vehicles in the urban area.

Infrastructure developments like a 50-megawatt solar power plant and plans for further renewable energy installations demonstrate Nusantara’s dedication to sustainable practices.

Transition Commencement

Recently, Widodo led the first cabinet meeting at the Garuda Palace in Nusantara, signifying the government’s resolve to move forward with the project. The Independence Day celebrations held in the new capital indicate the beginning of a pivotal transformation for Indonesia.

Widodo emphasized the significant impact of Nusantara, stating that it will usher in new work ethics, mindsets, and green and digital economies.

However, despite the progress and legislative changes affecting Jakarta’s status, the formal capital relocation is pending a presidential decree, a decision that might fall to incoming President Prabowo Subianto.

While Jakarta will continue to function as a de facto capital, Nusantara will undergo several stages of development culminating in 2045 when it will be fully operational with an estimated population of 1.2 million.

The focus on public-private partnerships and foreign investments is crucial for Nusantara’s development, with tax incentives and guarantees offered by the Indonesian government to attract foreign investment.

Despite the project’s potential benefits, concerns remain about environmental destruction, land acquisition processes, and future policy directions under the new administration.