Nusantara Capital City Mega Project in Indonesia: Progress and Public Skepticism

Indonesia's decision to relocate its capital from Jakarta to Nusantara, in East Kalimantan, is a bold and historic move aimed at addressing numerous challenges faced by the current capital.

Indonesia’s decision to relocate its capital from Jakarta to Nusantara, in East Kalimantan, is a bold and historic move aimed at addressing numerous challenges faced by the current capital. The Ibu Kota Negara (IKN) project, as it is known, is an ambitious undertaking that seeks to create a modern, sustainable, and resilient city, reflecting the nation’s aspirations for the future. However, this massive project has also sparked significant skepticism among the Indonesian public, environmentalists, and various stakeholders.

This article provides an overview of the ongoing development of the IKN project, examining its objectives, progress, and the various concerns and criticisms it has elicited. The discussion aims to present a balanced view of the project’s potential benefits and the skepticism surrounding its execution and implications.

The Need for a New Capital

Jakarta, Indonesia’s current capital, is one of the most densely populated and economically vital cities in Southeast Asia. However, it faces severe challenges, including overpopulation, traffic congestion, environmental degradation, and vulnerability to natural disasters. Jakarta is sinking at an alarming rate due to excessive groundwater extraction, and parts of the city are below sea level, making it highly susceptible to flooding. These issues have made the city increasingly unviable as the nation’s administrative and political center. The decision to relocate the capital was driven by the need to address these challenges and to promote more balanced regional development. President Joko Widodo announced the plan to move the capital to East Kalimantan in 2019, with the goal of reducing the burden on Jakarta and fostering growth in less-developed areas of the country.

Vision for Nusantara

The new capital, named Nusantara, is envisioned as a “smart” and “green” city that will serve as a model for sustainable urban development. The project aims to create a city that is technologically advanced, environmentally friendly, and socially inclusive. Key objectives of the IKN project include:

1. Decentralization of Economic Activities: By relocating the capital to East Kalimantan, the government aims to reduce the concentration of economic activities in Java and promote development in other regions. This is expected to lead to more equitable economic growth across the country.

2. Environmental Sustainability: Nusantara is designed to be a green city, with a focus on preserving natural ecosystems and minimizing environmental impact. The city will incorporate extensive green spaces, renewable energy sources, and sustainable building practices.

3. Technological Innovation: The new capital is intended to be a hub for technological innovation, with infrastructure designed to support smart city initiatives. This includes digital governance, intelligent transportation systems, and advanced waste management.

4. Resilience to Climate Change: The location of Nusantara in East Kalimantan, away from coastal areas and at a higher elevation, makes it less vulnerable to the impacts of climate change, such as sea-level rise and flooding. The city is being planned with resilience in mind to ensure its long-term viability.

5. Cultural Integration and Social Inclusivity: The government aims to create a city that reflects Indonesia’s cultural diversity and promotes social cohesion. Nusantara will incorporate elements of local culture and architecture, and efforts will be made to ensure that the city is inclusive and accessible to all Indonesians.

Progress of the IKN Project

Planning and Initial Developments

Following the announcement of the IKN project, the Indonesian government established the Nusantara Capital Authority (NCA) to oversee the planning and execution of the new capital’s development. The NCA has been tasked with coordinating the various aspects of the project, including land acquisition, infrastructure development, and stakeholder engagement. The master plan for Nusantara has been developed in collaboration with international urban planners and experts. This plan outlines the city’s layout, including government districts, residential areas, commercial zones, and green spaces. The city is designed to accommodate up to 1.5 million residents initially, with potential for future expansion as the population grows.

Initial developments have focused on land acquisition, environmental assessments, and the construction of basic infrastructure. The government has acquired significant tracts of land in East Kalimantan, with efforts made to minimize the displacement of local communities and protect sensitive ecosystems.

Infrastructure Development

Infrastructure development is a critical component of the IKN project, with the government prioritizing the construction of transportation networks, utilities, and public facilities. Key infrastructure projects include the construction of highways, bridges, railways, and airports to ensure connectivity between Nusantara and other parts of Indonesia.

One of the flagship projects is the construction of the Presidential Palace, which will be a symbolic and functional center of the new capital. The palace is being designed to incorporate traditional Indonesian architectural elements, blending modern design with cultural heritage. Additionally, government offices, residential complexes for civil servants, and public amenities such as schools and hospitals are under construction. The government is also focusing on developing renewable energy sources to power the new capital. Solar power, wind energy, and hydropower are being explored as part of efforts to ensure that Nusantara is a sustainable and energy-efficient city.

International Collaboration

The IKN project has garnered international attention, with several countries and multinational corporations expressing interest in contributing to the development of Nusantara. Japan, South Korea, and the United Arab Emirates are among the nations that have signed agreements to provide technical expertise, investment, and support in various areas of the project.

These international collaborations are expected to bring in significant investment and technology, helping to realize the ambitious vision for Nusantara. The involvement of global partners also highlights the project’s importance on the international stage, as it aligns with broader trends in sustainable urban development and smart city initiatives.

Public Skepticism and Criticism

Environmental Concerns

Despite the government’s emphasis on sustainability, the IKN project has faced considerable criticism from environmentalists and conservation groups. One of the primary concerns is the potential ecological impact of developing a large urban area in a region known for its rich biodiversity. East Kalimantan is home to endangered species such as orangutans and proboscis monkeys, and its forests play a crucial role in carbon sequestration and climate regulation. Critics argue that the construction of Nusantara could lead to deforestation, habitat destruction, and the displacement of wildlife. While the government has pledged to preserve green spaces and minimize environmental damage, there are doubts about the effectiveness of these measures, given the scale of the project.

Additionally, there are concerns about the carbon footprint of the construction activities. The initial stages of development require significant energy consumption and the use of materials with high carbon emissions, such as concrete and steel. Environmentalists warn that the project’s long-term sustainability could be compromised by these early-phase impacts.

Economic and Social Impacts

The economic viability of the IKN project has also been a topic of debate. The estimated cost of developing Nusantara is over $33 billion, a substantial amount for a developing country like Indonesia. Critics question whether the project is the best use of public funds, especially in light of other pressing issues such as poverty, healthcare, and education.

The financial burden of the IKN project is particularly concerning given the uncertainties in the global economy. The COVID-19 pandemic has strained government finances, leading some to argue that the timing of the project may not be ideal. There are fears that the investment required for Nusantara could divert resources from other critical areas of development.

Socially, the development of Nusantara has raised concerns about the displacement of local communities, particularly indigenous groups in East Kalimantan. These communities have expressed fears about losing their ancestral lands and cultural heritage due to the construction of the new capital. While the government has promised to protect the rights of local populations, there is skepticism about the implementation and enforcement of these protections.

Political and Administrative Challenges

The IKN project has also faced political opposition and administrative challenges. Some political figures and analysts have criticized the decision to move the capital, arguing that it diverts attention from more urgent national issues. There are concerns that the relocation could lead to inefficiencies in government operations during the transition period, as civil servants and institutions adjust to the new location.

Furthermore, the complexity of the project, which involves multiple stakeholders and jurisdictions, has led to delays and bureaucratic hurdles. Ensuring coordination between different levels of government and private sector partners is a significant challenge that could impact the project’s timeline and overall success.

Public Sentiment

Public opinion on the IKN project is mixed, with a significant portion of the population expressing skepticism about its necessity and potential benefits. A survey conducted by the Indonesian Survey Institute in 2021 revealed that while many Indonesians are aware of the project, there is widespread concern about its economic and social implications.

Some Indonesians support the idea of a new capital, seeing it as an opportunity for economic growth and development in less-developed regions. However, others are wary of the costs involved and question whether the project will deliver the promised benefits. The ongoing skepticism reflects broader concerns about governance, transparency, and the equitable distribution of development outcomes.

Conclusion

The development of Indonesia’s new capital, Nusantara, is an ambitious project that reflects the government’s vision for a more sustainable, resilient, and equitable future. While the IKN project holds the promise of addressing some of the challenges faced by Jakarta and promoting regional development, it has also sparked significant skepticism and criticism. Environmental concerns, questions about economic feasibility, and fears of social displacement are among the key issues that have been raised by critics and the public. The success of the IKN project will depend not only on the government’s ability to execute its plans effectively but also on its capacity to address these concerns and ensure that the new capital benefits all Indonesians.

As the project progresses, it will be essential for the government to maintain transparency, engage with stakeholders, and implement measures that minimize environmental and social impacts. Only by addressing these challenges can Nusantara become the thriving, sustainable capital that Indonesia envisions.

Sekarsari Sugihartono
Sekarsari Sugihartono
I am an international relations master's student at Gadjah Mada University. My interests are SDGs and International Trade Dispute.