Nusantara

Nusantara, a new ice cream flavor? No, Nusantara is the name of Indonesia's new capital city, which is currently being built on Borneo. In this article, we explain why Indonesia needs a new capital city and what will make this futuristic forest city stand out.

Why does Indonesia need a new capital city?

The new capital, Nusantara, is intended to reduce the pressure on the densely populated current capital, Jakarta, and distribute the population more evenly across the islands (1). Approximately 10 million people live in Jakarta itself, and around 34 million people live in the surrounding Jabodetabek metropolitan area, the second-largest conurbation in the world (2). Nusantara and the existing city of Balikpapan, just 35 km away, are set to develop into an important economic area for Indonesia.

However, Nusantara is also being built because Jakarta has been sinking for years due to ongoing construction and groundwater extraction. As a city by the sea, Jakarta is extremely exposed to climate change and the associated rise in sea levels and storm surges. Some urban areas are already below sea level and are regularly flooded (2).

Map of Indonesia showing the old capital Jakarta on the island of Java and the new capital Nusantara on Borneo (© Ellena Ekarahendy).

A city planned on paper becomes reality

Nusantara is to be built as a CO₂-neutral “green smart city” with a total area of 2,500 km². It will feature a high proportion of green spaces and protected areas within the city limits, promote e-mobility, and be a city of short distances (3). Today, the region is a mosaic of forests, monocultures, villages, and a few industrial facilities such as mines. Many concepts and guidelines have already been developed for biodiversity and water management, as well as for the ecological construction of buildings and the minimization of CO₂ emissions. Non-binding targets have been set, e.g., that 70% of the area should be designated as green spaces (protected areas, agriculture, forest). In the planned protected areas, monocultures are to be reforested and abandoned mines recultivated (4).

In the first phase, 1.5 to 7 million residents are expected to move in (1). The Indonesian parliament has already relocated there. The Indonesian government held its first meeting in Nusantara on August 12, 2024 (3). It is not clear exactly how many people will remain in Jakarta. The final phase of the initial construction of Nusantara is scheduled for completion in 2045. Of the US$34 billion cost, just under 20% will be covered by the state budget, with the remainder coming from cooperation between the state and companies as well as private investment (5). Initiated as a prestige project by former President Joko Widodo, it continues to benefit from the support of the current president, Prabowo Subianto (1).

Construction of the new parliament building in Nusantara (© ANTARA).

Although the city is planned, at least on paper, to cause as little environmental impact as possible, doubts began to arise in 2024 regarding the scope of the project and other aspects of its content. This is due, among other things, to a lack of private investment and the resignation of some project managers and officials. Although the administrative posts have been reassigned, foreign investors in particular remain cautious and have invested significantly less than hoped for (6). As a result, construction work is progressing more slowly than planned.

Construction work is already well advanced but stagnated in 2024 (© NZZ).

Impact on biodiversity and the local population

The clearing of land in the future urban area began in 2022. An estimated 14,000 hectares of forest have been destroyed (6). Thus, the local flora and fauna (including the highly endangered gibbons, orangutans, proboscis monkeys, and sun bears) have already been adversely affected. In the future, two major roads (Nusantara Airport – Nusantara and Balikpapan – Nusantara) will run through existing mangrove and forest areas. This will result in habitat fragmentation. However, the impact on biodiversity cannot yet be adequately assessed at this early stage of the project.

The handling of the interests of the local indigenous peoples (members of the Balik, Dayak, Kutai, and Paser tribes) is still unclear. According to the Alliance of Indigenous Peoples of Nusantara (AMAN), an interest group for indigenous rights, and other NGO actors, the participation of the local population and decision-makers in the planning and implementation of urban development is in need of improvement and rather inadequate. This includes issues relating to land rights, resettlement, and the treatment of objections. The first suspected cases of illegal land grabbing have already been reported (7, 8, 9, 10, 11).

Futuristic forest city

The new capital city of Nusantara is to define new international standards in terms of environmental and climate protection. The vision for the project as a futuristic forest city takes greater account of nature conservation and environmental protection than other urban projects, at least on paper. The further development of the project and the actual implementation of environmental and human rights guidelines will show how the construction of the new capital will affect the environment and the local population. The opinions of the Indonesian population and various NGOs on Nusantara are still very diverse. This applies to both national and local debates on Nusantara. GREEN BOOTS will continue to follow this topic.

Author: Fabian Kessler

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