Indonesia names multi-billion new city to replace Jakarta

Indonesia has chosen the name Nusantara for the new RM134 billion capital city being constructed to replace Jakarta.

An Indonesian minister today said that the name Nusantara, which means archipelago, has been confirmed by President Joko Widodo.

Plans to move the capital city out of Jakarta to a remote region in East Kalimantan were announced by Widodo in 2019, reflecting the government’s policy of shifting economic activities away from Java, its most populated island.

Construction of the 466 trillion rupiah (RM134 billion) city was however hampered by the Covid-19 pandemic, and is now scheduled for completion in 2024.

Reuters reported in 2019 that the site of the new capital, 2,000km northeast of Jakarta, was one of the regions least prone to natural disasters.

Construction of a state palace and other buildings was initially set to start by 2021, along with upgrades of airports, sea ports and the building of access roads in the forested area earmarked for transformation into a new smart city.

Civil servants meanwhile were due to start moving by 2024.