On 18 January 2022, Indonesia passed a bill confirming the relocation of its capital from Jakarta to East Kalimantan province.

Indonesian President Joko Widodo first announced the plan to move the capital city from Jakarta in 2019.

The aim would be to make Nusantara a city, which is “a driver of Indonesia’s economy in the future, as well as a city which is a symbol of national identity and represents the diversity of the Indonesian nation”.

Since 1949, Jakarta has remained Indonesia's capital after independence from Dutch colonisers. However, Jakarta’s chances of maintaining its present stature remain slim due to factors such as flooding, rising sea levels and earthquakes that are caused due to its location in the Pacific Ring of Fire. Concerns about the city being submerged by 2050 have also risen.

Nusantara means 'archipelago' in the Javanese language. The future city will be built on Borneo Island which is shared by Brunei, Indonesia and Malaysia. The capital city is being built with sustainable goals in mind as about 25% of the land will be used for urban projects while the remainder will host tropical forests to capture the city's carbon footprint. Construction efforts are underway to provide a sample of the futuristic city by 2024. The project is expected to cost about USD33 billion and will be funded by the country's budget and the private sector.

Nusantara’s location on Borneo Island is strategic as the island is shared by Brunei, Indonesia and Malaysia. Being a part of ASEAN, regional cooperation can be boosted through opportunities in infrastructure, trade, supply of labour, renewable energy and tourism.

The new capital will be located in the East Kalimantan province (see map) home to both rainforests and rich wildlife. As Jakarta faces the vices of unplanned city development and climate change, the government will be eager to engage with entities that can provide resilient infrastructure in building a green and sustainable city.