The ground is literally disappearing. In parts of North Jakarta, the city is sinking by up to 25 centimeters every single year, which is basically a slow-motion catastrophe that most people just live with because, well, what else can you do? For decades, when people talked about the capital of Indonesia, they were talking about Jakarta. It’s a massive, chaotic, beautiful, and sometimes overwhelming megacity of over 10 million people. But if you’ve been following the news lately, you know that the "capital" label is currently in a weird state of limbo.
Indonesia is building a brand-new city called Nusantara in the middle of a jungle in East Kalimantan. It’s a project so ambitious it feels like something out of a sci-fi novel. President Joko Widodo, or Jokowi as everyone calls him, officially signed the decree to move the capital because Jakarta is just... full. It’s congested, it’s sinking, and it’s carrying too much of the country's economic weight on its tired shoulders.
Jakarta: The Sinking Giant
Honestly, you can't talk about the capital of Indonesia without acknowledging the sheer scale of Jakarta. It’s the heart of the nation. For centuries, since the Dutch East India Company set up shop in Batavia, this has been the center of power. But the geography is working against it. About 40% of the city is now below sea level. When the monsoon rains hit, the 13 rivers running through the city have nowhere to go.
It’s not just the water. The traffic is legendary. If you’ve ever sat in a "macet" (traffic jam) on Jalan Sudirman, you know the feeling of spending two hours moving three kilometers. The government estimates that traffic congestion costs the economy billions of dollars annually in lost productivity. It’s a mess. And yet, people love it. There’s a grit and an energy in Jakarta that you won't find anywhere else in Southeast Asia. From the high-end malls of Grand Indonesia to the street food stalls selling Nasi Goreng in Glodok, it’s a city of extreme contrasts.
Why Nusantara?
So, why move? Why now? The decision to shift the capital of Indonesia to East Kalimantan wasn't just about the sinking ground in Java. It’s about equity. Indonesia is an archipelago of over 17,000 islands, but for its entire modern history, Java has been the golden child. Java holds over 50% of the population and contributes nearly 60% of the GDP. The rest of the country, especially the eastern islands, has often felt left behind.
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Nusantara—often abbreviated as IKN (Ibu Kota Nusantara)—is located on the island of Borneo. It’s geographically central. By moving the seat of government there, the administration hopes to spark a "de-javanization" of the economy. They want to spread the wealth. It’s a 35-billion-dollar bet on the future. The vision is a "Forest City"—a sustainable, high-tech hub that runs on renewable energy and preserves the surrounding tropical rainforest. Or at least, that’s the sales pitch.
Critics are, understandably, skeptical. Environmental groups like WALHI have raised massive red flags about the impact on orangutan habitats and the indigenous communities living in the area. You can't just drop a city into a jungle without consequences. There’s also the question of the budget. Building a city from scratch is expensive, and while the government says only about 20% will come from the state budget, the rest relies on private investment.
The Two Capitals Era
We are currently in a transition period. Jakarta is still the financial and commercial powerhouse. It’s where the stock exchange is, where the big banks are, and where most of the people live. Nusantara is where the bureaucrats and the president are heading. It’s a bit like the relationship between New York and Washington D.C., or Sydney and Canberra.
If you visit Jakarta today, it doesn't feel like a city that’s lost its status. The skyline is still growing. New MRT lines are opening. There’s a frantic push to "green" the city and fix the sinking problem with a massive sea wall project called the Great Garuda. Some experts, like those from the Bandung Institute of Technology (ITB), argue that even if the capital moves, Jakarta still needs to be saved. You can't just abandon 10 million people to the rising tides.
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What This Means for Travelers
If you’re planning a trip to see the capital of Indonesia, you’re probably still going to land at Soekarno-Hatta International Airport in Jakarta.
Nusantara is still very much a construction site. While the first phase—including the presidential palace shaped like a Garunda bird—is largely functional, it’s not exactly a tourist destination yet. However, for the adventurous, East Kalimantan is stunning. It’s the gateway to the Derawan Islands and the Mahakam River. Moving the capital will eventually make this remote region much more accessible to international visitors.
- Jakarta remains the place for nightlife, museums (like the National Museum), and the historical Kota Tua district.
- Nusantara will eventually be the place for urban hikers and those interested in sustainable architecture.
- The Transition means domestic flights between Jakarta and Balikpapan (the nearest major city to the new capital) are becoming much more frequent.
The Reality of "Moving" a City
It's important to realize that "moving the capital" doesn't happen overnight. It’s a process that will take decades. Brazil did it with Brasilia in the 1960s. Nigeria did it with Abuja. In both cases, the old capitals (Rio de Janeiro and Lagos) remained the biggest, busiest cities in their respective countries.
The same will likely happen here. Jakarta will remain the "New York" of Indonesia. It will be the place where culture is made and money is traded. Nusantara will be the place where the laws are written and the diplomatic cables are sent.
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Is it a good idea? Honestly, it depends on who you ask. If you're a government official tired of the Jakarta floods, it’s a godsend. If you're a Balikpapan local worried about your rent prices tripling, it’s a nightmare. What's certain is that the capital of Indonesia is no longer just a place on a map; it's a massive, living experiment in how a 21st-century nation tries to reinvent itself in the face of climate change.
Practical Steps for Navigating the Change
If you are following the development of the new capital of Indonesia for business, travel, or research, here is how to stay informed and handle the transition:
- Monitor the IKN Authority (Otorita Ibu Kota Nusantara): This is the official government body managing the transition. Their updates are the most reliable for construction milestones and relocation schedules for civil servants.
- Separate "Administrative" from "Commercial": If you are looking to invest or start a business, Jakarta is still the primary market for the foreseeable future. Don't move your operations to Kalimantan unless you are specifically in the construction, green tech, or government contracting sectors.
- Check Air Quality and Logistics: If you have to visit the new capital site, fly into Balikpapan (BPN). From there, it's about a two-hour drive to the IKN site, though infrastructure is improving rapidly. Be aware that during the dry season, Kalimantan can be prone to forest fires, which affects air travel.
- Watch the "Special Zone" Legislation: The Indonesian parliament is currently refining the laws that give Jakarta a "Special Zone" status once it is no longer the capital. This will dictate how the city is governed and could lead to new tax incentives to keep businesses from leaving.
- Sustainable Travel: If you visit the Kalimantan region, prioritize eco-tourism operators that support local indigenous Dayak communities. The influx of new residents to the area is putting pressure on local resources, and responsible tourism is more important here than ever.
The shift is happening. Whether Nusantara becomes a lush green utopia or just another concrete jungle remains to be seen, but the era of Jakarta as the sole, undisputed capital of Indonesia is officially coming to a close.