Indonesia’s $33 Billion New Capital Nusantara: Timeline, Cost & Completion Date Explained.
Indonesia is embarking on an ambitious journey to relocate its capital from Jakarta to a newly planned city named Nusantara. Indonesia’s new capital city, Nusantara is set to span approximately 2,562 square kilometres (256,100 hectares), making it significantly larger than Jakarta in terms of land area. This monumental project is driven by environmental concerns, urban overpopulation, and strategic aspirations for a sustainable future.
Why Move from Jakarta to Nusantara?
Jakarta, Indonesia’s current capital, faces severe environmental challenges. Approximately 40% of the city lies below sea level, and it continues to sink at a rate of 3 to 10 centimetres annually due to excessive groundwater extraction and rising sea level. Additionally, Jakarta grapples with overpopulation, traffic congestion, and pollution, making it increasingly unsustainable as the nation’s administrative centre. The distance from Jakarta to Indonesia’s new capital, Nusantara is approximately 1,300 kilometres (810 miles) by air, located in East Kalimantan on the island of Borneo.
In response, the Indonesian government initiated the development of Nusantara, envisioned as a “smart and green” city that will serve as a model for sustainable urban development.
Timeline and Construction Progress of New Capital Nusantara
The development of Nusantara is structured into five phases spanning from 2022 to 2045. The first phase (2022-2024) focuses on constructing basic infrastructure, including the State Palace, parliament building, strategic ministry offices, and residential complexes for 500,000 civil servants and other residents.
While the project aims for full completion by 2045, the relocation of the presidential office to Nusantara is slated for August 17, 2028. As of now, the first phase of construction is reported to be 80% complete.
Financial Overview
The estimated cost for building Nusantara is approximately $33 billion, The Indonesian government plans to finance 20% of this amount through the state budget, while the remaining 80% is expected to come from private sector investments and public-private partnerships.
To put this into perspective, Indonesia’s Gross Domestic Product (GDP) was around $1.3 trillion in the previous year, making the Nusantara project roughly 2.5% of the nation’s GDP.
Vision for a Sustainable Future
Indonesia’s new capital Nusantara is envisioned as a “forest city” that harmoniously blends urban development with nature. The city plans to source 100% of its energy needs from renewable sources by 2045, including floating solar and hydropower facilities. Additionally, 75% of the city’s area is intended to remain forested, preserving the rich biodiversity of Borneo. The city aims to be a model for sustainable urban living, integrating advanced technology, modern infrastructure, and environmental preservation to create a harmonious balance between development and sustainability.
Environmental Concerns
Despite its green aspirations, the construction of Nusantara has raised environmental concerns. Reports indicate that over 20,000 hectares of primary forest have been cleared for the project, leading to habitat loss for endangered species and displacement of indigenous communities.
Environmentalists warn that development could harm the forests and wildlife in the region, including mangroves and coastal waters rich in biodiversity.
Future Prospects
Nusantara’s strategic location between Balikpapan and Samarinda in East Kalimantan positions it as a potential hub for economic growth and tourism. The city plans to include facilities for health, education, museums, technology parks, and more, aiming to attract both domestic and international visitors.
While the project faces challenges, including environmental concerns and funding hurdles, the Indonesian government’s commitment to creating a sustainable and inclusive capital city remains steadfast.
In conclusion, Nusantara represents Indonesia’s bold vision for a sustainable future, addressing the pressing challenges faced by Jakarta. As the project progresses, balancing development with environmental preservation will be crucial to realizing the dream of a green and inclusive capital city.
The new capital of Indonesia, Nusantara, is designed to be a sustainable and eco-friendly city, addressing the environmental and logistical challenges faced by Jakarta. Here are some key points about Nusantara:
1. **Environmental Challenges**: Jakarta faces severe environmental issues, including sinking land, overpopulation, traffic congestion, and pollution, making its role as the nation’s administrative center unsustainable.
2. **Location**: Nusantara is located in East Kalimantan on the island of Borneo, approximately 1,300 kilometers (810 miles) from Jakarta.
3. **Vision**: The city is envisioned as a “smart and green” urban development model, aiming for sustainability and harmony with nature.
4. **Development Phases**: The development is structured into five phases from 2022 to 2045.
5. **First Phase**: Focuses on constructing basic infrastructure, including the State Palace, parliament building, ministry offices, and residential complexes for 500,000 individuals.
6. **Completion**: The project is aimed for full completion by 2045, with the presidential office relocation slated for August 17, 2028.
7. **Progress**: As of now, the first phase of construction is reported to be 80% complete.
8. **Cost**: The estimated cost for building Nusantara is approximately $33 billion, which is roughly 2.5% of Indonesia’s GDP of $1.3 trillion.
9. **Funding**: The government plans to finance 20% of the cost through the state budget, with the remaining 80% expected from private sector investments and public-private partnerships.
10. **Energy**: The city plans to source 100% of its energy needs from renewable sources.
This ambitious project aims to create a sustainable and environmentally friendly capital that serves as a model for future urban development.