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Indonesia is set to have a new capital city

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The move comes as the current capital city of Jakarta continues to sink
Indonesia has announced a new capital city, Nusantara, replacing Jakarta. The city will be located on the island of Borneo. The decision was made as the city of Jakarta continues to sink.

According to the World Economic Forum, Jakarta is one of the fastest sinking cities on Earth. Sitting upon swampy ground near the sea, the city is home to 10 million people. The weight of the growth of the city has further contributed to speed of the sinking.

Minister of National Development Planning Suharso Monoarfa explained: “The relocation of the capital city to Kalimantan is based on several considerations, regional advantages, and welfare. With the vision of the birth of a new economic centre of gravity in the middle of the archipelago.”

The idea to relocate the capital city was first proposed in 2019, based on concerns over Jakarta’s environmental and economic sustainability.

The bill was approved by the House of Representatives on Tuesday local time and provides the legal framework for the relocation to go ahead. The move is set to cost an estimated $US32 billion.

The initial phase of relocation will begin between 2022 and 2024, however, no official timeframe has been set. There will be five phases for the relocation.

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