You may be aware that big changes are afoot in Indonesia, with the country’s capital city set to move to a brand-new location. Taking over from the current capital of Jakarta, the upcoming capital city of IKN (Ibu Kota Negara) is currently being built on the island of Kalimantan (Indonesian Borneo) and will be called Nusantara. This exciting and ambitious project is set to reshape Indonesia’s administrative and political landscape, replacing Jakarta as the heart of the nation.
Here’s what you need to know about IKN Nusantara and this important development for the country of Indonesia:
Table of Contents
1. Why Move the Capital?
Several factors have driven Indonesia’s decision to relocate the capital:
- Overcrowding in Jakarta: With a population of over 10 million people and even greater numbers in the metropolitan area, Jakarta is heavily congested and faces significant strains on its infrastructure.
- Flooding and Environmental Issues: Jakarta is prone to frequent flooding and some parts of the city are sinking due to excessive groundwater extraction.
- Environmental Sustainability: The new capital aims to promote sustainable urban development and reduce environmental pressure on Jakarta.
- Economic Distribution: Moving the capital to Kalimantan is part of a broader effort to decentralise economic activity and promote development outside of Java, which is currently Indonesia’s most populous and economically dominant island.
2. Location of Nusantara
The new capital is being built in the East Kalimantan province, specifically in the Penajam Paser Utara and Kutai Kartanegara regencies. This area was selected because of its low risk of natural disasters, such as earthquakes and volcanoes, as well as its proximity to existing cities like Balikpapan and Samarinda.
3. Nusantara’s Vision
Nusantara is being developed to be a green, smart and sustainable city, with the government aiming for it to be:
- Environmentally Friendly: A significant portion of the city’s area will be allocated to green spaces with a focus on minimising carbon emissions.
- Technologically Advanced: Nusantara’s vision is to be a “Smart City,” utilising advanced technologies for urban management, transportation and services.
- Resilient to Climate Change: Sustainable infrastructure and planning will address concerns related to ongoing climate change and environmental resilience.
4. Development Phases
The development of IKN Nusantara will occur in several phases:
- Phase 1 (2022-2024): Initial infrastructure construction, including government buildings, housing for civil servants and basic facilities.
- Phase 2 (2025-2035): Expansion of infrastructure, including the relocation of government institutions and the completion of key transportation networks.
- Phase 3 (2035 and beyond): Further development of the city to become a fully-functional capital and a global hub for trade and innovation.
5. Economic and Strategic Importance
- Economic Growth: The relocation is expected to stimulate the economy of Kalimantan, especially in sectors such as real estate, construction and services. It’s part of Indonesia’s long-term vision to reduce economic disparities between regions.
- Geopolitical Strategy: The new capital’s position on the island of Borneo places it closer to the strategic South China Sea, making it important for Indonesia’s defence and regional influence.
6. Environmental Concerns
Although the project promises sustainability, there are concerns from environmental groups regarding the potential impact on Kalimantan’s rainforests, which serve as critical carbon sinks as well as being home to endangered species such as orangutans. Managing deforestation, biodiversity loss and the displacement of local communities are going to be key challenges.
7. Cultural and Social Considerations
- Local Culture: East Kalimantan is home to several indigenous groups, including the indigenous Dayak people. The government has promised to include local culture in the development plans, however there are concerns about potential cultural displacement as more people move to the area.
- Population Relocation: The city will eventually house around 1.5 million people, including government workers and their families, creating significant demographic shifts in the region.
8. Financing the Project
The development of Nusantara will be a massive financial undertaking. The total cost is estimated to be around IDR 466 trillion (USD 33 billion). The financing will come from a combination of public funds, private investments and international partnerships.
9. Current Status
As of 2024, construction is underway for Phase 1, including the building of government facilities, roads and utilities. President Joko Widodo (Jokowi) has been closely overseeing the project, and the government expects the official move to the new capital to begin between 2024 and 2025, with further development continuing afterwards.
10. Impact on Jakarta
While Nusantara will become the administrative capital, Jakarta will continue to be Indonesia’s economic and cultural hub. Jakarta is also set to undergo significant renovations to address its flooding and infrastructural challenges, ensuring it remains a vital part of Indonesia’s future.
11. How to Get to IKN (Nusantara) from Jakarta and Bali
Since Nusantara is still under development, currently the best way to get to the general region (East Kalimantan) is by flying to Balikpapan, the largest city near the new capital. Here are the typical routes:
From Jakarta to IKN (Nusantara)
- Flight to Balikpapan (Sepinggan International Airport):
- Take a direct flight from Soekarno-Hatta International Airport (CGK) in Jakarta to Sultan Aji Muhammad Sulaiman Sepinggan International Airport (BPN) in Balikpapan.
- The flight duration is approximately 2-hours.
- From Balikpapan to Nusantara:
- From Balikpapan, the IKN site (in Penajam Paser Utara and Kutai Kartanegara) is around 80km away. You can travel by car or take a ferry from Balikpapan to Penajam, then continue by car or bus to reach the construction area of Nusantara.
From Bali to IKN (Nusantara)
- Flight to Balikpapan:
- From Ngurah Rai International Airport (DPS) in Bali, you can also fly directly to Sultan Aji Muhammad Sulaiman Sepinggan International Airport (BPN) in Balikpapan.
- The flight duration is approximately 1-hour 45-minutes.
- From Balikpapan to Nusantara:
- Similar to the route from Jakarta, you will need to drive or take a ferry to the new capital site.
Future Travel Infrastructure
Once the Nusantara capital has been further developed, better transportation infrastructure, including roads, highways and possibly rail connections, will be established to facilitate easier access. There may also be plans to construct a new airport closer to the capital to reduce travel time.
IKN Nusantara is an ambitious project to create a modern and sustainable capital city in Kalimantan, helping to alleviate Jakarta’s pressures and serve as a symbol of Indonesia’s future development. However, its success will depend on carefully managing environmental concerns, financing and integrating with local communities.
We look forward to the new and exciting developments that will not only redefine Indonesia’s skyline, but also inspire other nations to embrace sustainability and innovation!
