• Skip to main content
  • Skip to after header navigation
  • Skip to site footer
The Halal Times

The Halal Times

Global Halal, Islamic Finance News At Your Fingertips

  • Home
  • Regions
    • Latin America
    • North America
    • Europe
    • Africa
    • Central Asia
    • South Asia
    • Australia
  • Marketing
  • Food
  • Fashion
  • Finance
  • Tourism
  • Economy
  • Cosmetics
  • Health
  • Art
  • Halal Shopping

Why Indonesia Is Abandoning Jakarta for Nusantara

Why Indonesia Is Abandoning Jakarta for Nusantara
2025-07-02 by Hafiz M. Ahmed

Jakarta is sinking. Not as a metaphor, not slowly, but literally — faster than any major city on earth. As the ground gives way to rising seas and the weight of unchecked development, Indonesia has decided to do something almost unimaginable: leave.

But the story doesn’t end in Jakarta. It begins 1,300 kilometers away in East Kalimantan, Borneo, where the government is building a new capital — Nusantara, a name that evokes Indonesia’s deep precolonial maritime heritage. The stakes are enormous. The costs even greater. Yet for a country of 270 million people facing climate collapse, economic imbalance, and demographic pressure, this is more than an infrastructure project. It’s an existential decision.

Why Indonesia Is Leaving Jakarta As the Capital

Jakarta, home to more than 30 million in the greater metro area, is crumbling under the weight of its own growth. It suffers from:

  • Uncontrolled groundwater extraction that causes entire neighborhoods to sink

    Get weekly Halal investment opportunities & Business Growth Strategies


    Thank you!

    You have successfully joined our subscriber list.

  • Chronic flooding made worse by sea level rise

  • Extreme traffic congestion that drains productivity

  • Dangerously polluted air that shortens lifespans

  • Overcrowded slums that stretch the limits of human dignity

Java, the island Jakarta sits on, holds more than half of Indonesia’s population, yet it represents just 7% of the country’s land. Moving the capital is, in part, an attempt to rebalance power, money, and opportunity toward the eastern provinces — long neglected in national policy.

Former President Joko Widodo, in his second and final term, saw the crisis as an opportunity: to build not just a new city, but a new national identity. Nusantara, he declared, would be a green, smart, inclusive capital — a place that reflects the Indonesia of tomorrow.

Why East Kalimantan? And Why Now?

East Kalimantan, on the Indonesian portion of Borneo, is far from major fault lines. It has no history of major flooding. It sits almost in the middle of the archipelago. But these aren’t the only reasons the government chose it.

The area is rich in natural resources, home to oil, gas, and coal. It already hosts large-scale industrial infrastructure. It has access to ports and major highways. But more importantly, it is relatively empty — at least compared to Java.

This is precisely what worries environmentalists and indigenous communities. Nusantara is being carved out of land that is ecologically sensitive and culturally complex. Dayak communities live here. So do some of the last orangutans in the wild. Once bulldozers arrive, the landscape — and the local way of life — will change forever.

What “Nusantara” Really Means

The word “Nusantara” is not new. It comes from old Javanese texts, used in the 13th century to describe the outer islands of the Majapahit Empire. Over time, it evolved to mean “the archipelago” — a poetic term for the whole of Indonesia.

By naming the capital Nusantara, the state is making a point. This is not just a relocation of government buildings. This is a symbolic move — one that reclaims pre-colonial identity and reflects the country’s diverse roots. It is also a rejection of Jakarta’s colonial past as Batavia, built by the Dutch for trade and control.

The Blueprint: A City for the Future

Nusantara is being built with massive ambition. Official plans call for:

  • A green city: Powered by renewable energy, surrounded by forests, with 75% green space.

  • A smart city: Integrating digital infrastructure, sensors, and real-time governance systems.

  • A sustainable city: Car-free zones, walkability, electric buses, and low-carbon architecture.

  • A civic city: Designed not just for politicians but for citizens, with cultural centers and public spaces.

The new Presidential Palace, designed in the shape of a mythical bird, Garuda, will anchor the government complex. Ministries will be relocated in phases. Housing, universities, research centers, and businesses are expected to follow.

The first phase — building the core government zone — is scheduled for completion by 2024, though delays are likely. The full city is expected to take two to three decades.

The Human Cost: Land, Livelihood, and Memory

For many Indonesians, especially those who live far from Java, the project is inspiring. It signals inclusion. A chance to break free from Jakarta’s shadow.

But for others, especially in Kalimantan, the excitement is tinged with anxiety.

Indigenous groups, including the Dayak and Paser peoples, say they were not properly consulted. Some have lived on this land for generations without formal land titles. They now fear eviction, land grabs, and cultural erasure.

Environmentalists warn of the irreversible destruction of rainforest ecosystems. Even if green architecture is promised, the damage from roads, electricity lines, and human presence will spread.

Civil servants, many of whom are based in Jakarta, are also wary. Moving to a new, unfinished city far from family and schools is not an easy sell. Without human momentum, buildings mean little.

Can It Work? What the Past Tells Us

History is full of ambitious capital relocations. Not all ended well.

  • Brasília, Brazil’s modernist wonder, attracted acclaim — but also became a symbol of elitism, disconnected from the people.

  • Abuja, Nigeria’s new capital, helped defuse ethnic tensions — but remains underdeveloped outside government zones.

  • Naypyidaw, Myanmar’s ghost capital, was built in secret and still feels like a city without citizens.

Indonesia insists it can avoid these mistakes. Nusantara will not just be administrative. It will be cultural, economic, and social — or so the plan says.

Still, critics say the plan focuses too much on buildings and too little on governance, affordability, and inclusion.

Follow the Money: Who’s Investing?

The total cost of Nusantara is estimated at $35 billion. The government has committed only about 20%. The rest must come from private investment, foreign partners, and public-private partnerships.

So far:

  • Japan, South Korea, and the UAE have expressed interest.

  • China has shown cautious support but remains noncommittal.

  • Indonesia’s own sovereign wealth fund, INA, is trying to rally domestic capital.

Still, many investors are hesitant. The risks are high. The regulatory environment is unclear. And the 2024 election has introduced political uncertainty about the project’s future.

A Strategic Pivot for the Muslim World?

For the Muslim world, especially countries in Southeast Asia, Nusantara presents a strategic opportunity.

  • Indonesia is the most populous Muslim-majority nation in the world.

  • By building a new capital that reflects Islamic values of sustainability, moderation, and justice, the government hopes to showcase a “Muslim model city” to the world.

  • Halal industries, Islamic finance, modest fashion, and halal tourism are expected to find a home in Nusantara’s business districts.

But the promise of an Islamic-friendly city must be backed by action. Transparent zoning, fair labor standards, and respect for religious pluralism will be essential.

This is not just an Indonesian story. It’s a regional and global experiment in how nations respond to:

  • Climate collapse and urban decay

  • Post-colonial identity and modern governance

  • The challenge of megacities vs. planned cities

  • Balancing development with environmental responsibility

If Nusantara succeeds, it could influence how countries from Pakistan to Egypt, Nigeria to Bangladesh think about urban futures. If it fails, it could become a cautionary tale — another top-down project that ignored the wisdom of the ground.

Nusantara is being built not just with concrete, but with symbolism. It is Indonesia’s response to a broken city, a broken model of growth, and a fractured geography. It’s an attempt to weave a new national story — one that begins deep in the forests of Borneo, not on the clogged streets of Jakarta.

But cities are not just planned. They are lived. What matters now is not just policy or architecture — but whether Nusantara becomes a place where people can thrive, where dignity is respected, and where the future feels not just imposed, but earned.

That answer will take years to write.

Author

  • Hafiz M. Ahmed

    Hafiz Maqsood Ahmed is the Editor-in-Chief of The Halal Times, with over 30 years of experience in journalism. Specializing in the Islamic economy, his insightful analyses shape discourse in the global Halal economy.

    View all posts

Like this:

Like Loading...

Related

Help Us Empower Muslim Voices!

Every donation, big or small, helps us grow and deliver stories that matter. Click below to support The Halal Times.

Previous Post:Halal Compliance in the UK From Farm to Abattoir ExplainedHalal Compliance in the UK From Farm to Abattoir Explained
Next Post:Kazakhstan Bans Face-Covering Attire (Niqab) in PublicKazakhstan Bans Face-Covering Attire (Niqab) in Public

Reader Interactions

Leave a Reply Cancel reply

You must be logged in to post a comment.

Sidebar

  • LinkedIn
  • X
  • Facebook
  • Instagram
The Halal Times

The Halal Times, led by CEO and Editor-in-Chief Hafiz Maqsood Ahmed, is a prominent digital-only media platform publishing news & views about the global Halal, Islamic finance, and other sub-sectors of the global Islamic economy.

  • Facebook
  • Twitter
  • Instagram
  • LinkedIn
  • YouTube

News

  • Home
  • Halal Shopping
  • Food
  • Finance
  • Fashion
  • Tourism
  • Cosmetics
  • Healthcare
  • Marketing
  • Art
  • Events
  • Video

Business

  • Advertise With Us
  • Global Halal Business Directory
  • Book Business Consultation
  • Zakat Calculator
  • Submit News
  • Subscribe

About

  • About
  • Donate
  • Write For Us
  • The HT Style Guide
  • Contact Us

Copyright © 2025 · The Halal Times · All Rights Reserved ·

%d