Nusantara (city)

Nusantara, officially the Capital City of Nusantara (Ibu Kota Nusantara, IKN), is the future capital of Indonesia, scheduled to be inaugurated on 17 August 2024, coinciding with Indonesian Independence Day. Nusantara will replace Jakarta as the national capital, a position the latter city has held since the country's proclamation of independence in 1945.

The site is situated on the east coast of the island of Borneo, specifically in the province of East Kalimantan. The city is expected to encompass an area of 2560 km2, surrounded by hilly landscapes, a forest, and a natural bay.

Construction began in July 2022, starting with land clearing and the construction of access roads. The initial phase, known as the 'Government Central Area zone', will comprise government offices, schools, and hospitals.

The project is estimated to be worth 523 trillion IDR (US$35 billion) and will be finished in 5 phases. Phase 1 started in August 2022. Around 150,000 to 200,000 workers from around Indonesia participated in this project with an additional workforce around the Nusantara region to ensure the participation of local workers. The project is expected to be fully finished in 2045, with Phase 5 being the last.

6,000 civil servants are expected to move into Nusantara by October 2024, in time for the inauguration of President-elect Prabowo Subianto. By the end of 2024, 12,000 civil servants are expected to move into Nusantara. The Ministry of Public Works and Housing will be the first ministry permanently moved into Nusantara in July 2024, followed by the Office of the President of Indonesia.

Etymology
The word nusantara is derived from an Old Javanese compound of nūsa (lit. 'islands') + antara (lit. 'outer'), which can be roughly translated as 'the outer islands' (from Java island's perspective). This term is taken from Gajah Mada's oath and may be interpreted as a translation of Dvīpāntara, an older Sanskrit term coined by Kertanegara, which carries roughly the same meaning.

Nusantara was chosen as the official name for the new capital city of Indonesia to embody the national geopolitical vision known as Wawasan Nusantara (lit. 'Nusantara Vision'; or 'Vision of the Indonesian archipelago'). It also reflects the country's status as an archipelagic state. According to local Kutai oral tradition recorded in the historical manuscript Salasilah Kutai (lit. 'The genealogy of the Kutai kingdom'), the area was referred to as Nusentara (lit. 'land that is divided') before it was named Kutai in the 13th century.

History
In April 2017, the Joko Widodo (Jokowi) administration reawakened a dormant motion to move the country's capital from Jakarta, making a commitment to completely assess prospective alternative sites for Indonesia's new capital by the end of that year.

According to an official from the Ministry of National Development Planning of Indonesia (Bappenas), the government was determined to move the Indonesian capital out of Java, an idea that had been intermittently floated since the Sukarno administration, which had considered Palangka Raya in Central Kalimantan. Shortly after the plan was announced, Jokowi visited two alternative locations in Kalimantan, Bukit Soeharto in East Kalimantan, and the Triangle Area near Palangka Raya. In April 2019, a 10-year plan to transfer all government offices to a new capital city was announced.

The National Development Planning Ministry recommended the three provinces of South, Central, and East Kalimantan which Jokowi visited, given that each met the requirements for a new capital—including being relatively free from earthquakes, tsunamis and volcanoes, as well as allowing for a maritime port.

On 23 August 2019, Jokowi formally ratified the plan, as part of a strategy to reduce developmental inequality between Java and other islands in the Indonesian archipelago and to reduce Jakarta's burden as Indonesia's primary hub.

The National Development Planning Ministry estimated the relocation cost to be 466 trillion IDR (US$32.7 billion) and that the government intended to cover 19% of the cost, the remainder coming mainly from public-private partnerships and direct investment by both state-owned enterprises and the private sector.

At the same time, US$40 billion will be allocated to saving Jakarta from sinking in the next decade,  which has also been widely reported as the fundamental underlying cause for the relocation of the capital.

In early September 2021, the bill for capital relocation was completed. On 29 September 2021, the Jokowi administration submitted an omnibus bill for the capital relocation to the House of Representatives (the lower house of Indonesian legislature). Amongst many items prescribed in the bill, it contained the plan for the formation of a Capital City Authority (Otorita Ibu Kota Negara), a special agency responsible for the new capital and answering to the President. The new agency was granted ministry-like qualities in that the office holder would be appointed by the President, but with special governing capabilities akin to a provincial governor. It will also regulate how the Capital Authority will manage its funding, taxation, retribution, and assets.

Due to the plan being submitted in the middle of Jokowi's second term as president, the People's Consultative Assembly (MPR) put forward suggestion for a constitutional amendment to re-establish MPR's ability to enact Principals of State Policies (Pokok–Pokok Haluan Negara, PPHN), similar to the New Order's MPR's State Policies Outline (Garis Besar Haluan Negara, GBHN). This was to provide security and sustainability to the project and ensure its continuation after Jokowi was no longer in the presidency. Based on the results of the KedaiKOPI Survey Institute survey in August 2019, 95.7% of respondents from Jakarta expressed their rejection of the plan to move the capital city to East Kalimantan. On 17 January 2022, during a Special Committee Meeting, Minister of National Development Planning Suharso Monoarfa said the new nation's capital would be named Nusantara.

It was hoped that development of Nusantara would learn lessons from a similar relocation, when Brazil relocated its capital from Rio de Janeiro to Brasilia in 1960.

On 3 June, 2024 it was announced that Bambang Susantono, head of the Nusantara Capital City Authority, along with his deputy, Dhony Rahajoe, had resigned. Yusuf Wibisono, Director of the Institute for Demographic and Poverty Studies (Ideas) speculated that this might have been sparked by president-elect Prabowo being less enthusiastic about the project than Jokowi was, citing Prabowo's recent statements in which he said the project would still continue, but would no longer be a priority.

Design
The Ministry of Public Works and Public Housing organized a capital city design contest in late 2019. The winner, Nagara Rimba Nusa ('Forest Archipelagic Country') by Urban+ was officially announced on 23 December 2019. The government undertook to collaborate on the design of the winning team with that of the second- and third-placed teams, as well as international designers, to sharpen the final design process up to 2020. Designers from at least three countries, namely China, Japan, and the United States, had offered to be involved in the design. The name, which had been suggested about three months earlier, is aligned with the winner's main concept.

The city is designed for sustainability and protecting its surrounding Kalimantan forests, targeting 80% of mobility to be supported by public transport, cycling, or walking and drawing all of its energy from renewable sources and allocating 10% of its area to food production.

In March 2022, the Ministry again organized a design contest for four structures, namely the vice-presidential palace, the legislatures' office complex, the judiciary's office complex, and a complex set for public worship next to Lake Pancasila.

Construction
Following the inauguration of Bambang Susantono as Head of the Authority, provinces across the country sent symbolic quantities of soil and water from historically or culturally significant sites in their respective provinces to be part of the new capital. Central Kalimantan brought pieces of soil from a hill where Tjilik Riwut, a national hero from the province and respected Dayak figure, was said to be meditating. East Kalimantan brought water and soil from Kutai Lama, where the historical Kutai Kartanegara kingdom was found. North Maluku brought a combination of soil and water from four main historical sultanates in Maluku, otherwise known as Maluku Kie Raha, which are Jailolo, Ternate, Tidore, and Bacan. East Nusa Tenggara province brought soil from seven regencies in the province, while Bengkulu brought soil from the location where Sukarno was exiled. South Kalimantan brought water and soil from former residences of respected ulemas in the province, Zainal Ilmi and Syekh Muhammad Al-Banjari. Southeast Sulawesi presented soil and water from the site of the historical Sultanate of Buton in Baubau. East Java also presented soil from sites of the former Majapahit Empire.

Initially, in July 2022, 100,000 workers from across Indonesia were deployed to the Nusantara site. However, this decision drew criticism from local organizations for not adequately involving local workers. In response to these concerns, President Joko Widodo instructed the Nusantara Capital City Authority to increase the workforce to between 150,000 and 200,000 to ensure the participation of local workers in the development of Nusantara.

Construction was delayed until after the COVID-19 vaccination campaign completed in March 2022.

Financial problems
In March 2022, the Japanese SoftBank Group withdrew from the project because of uncertainty about returns. According to Indonesian Maritime Affairs and Investment Coordinating Minister Luhut Panjaitan, the investment would have totalled U$30–40 billion. This was a setback as the Indonesian government had planned to supply only 19.2% of the project funding from state funds, with the balance coming from domestic and foreign investors.

At a conference in Singapore in June 2023, Jokowi tried to reassure investors that the project would continue irrespective of who won the 2024 Indonesian presidential election, and that Nusantara was a "golden opportunity" for investment. By August 2023, the government had only allocated 20% of the total funds needed, and investors were reluctant to make up the shortfall because of political uncertainty and Indonesia's record of underinvestment in infrastructure.

In November 2023, Jokowi admitted that not a single foreign investor had put money into Nusantara. Deputy for Funding and Investment at the IKN Authority, Agung Wicaksono, said that there were a number of foreign investors who were partners with domestic investors. These included Swissotel, which is owned by Accor Group, working with Hotel Nusantara and Sembcorp partnering with state-owned electricity company PLN. He also claimed there were 300 letters of intent.

Geography
Nusantara is located on the east coast of Borneo, the world's third largest island. The city shares a land border with the province of East Kalimantan and has a coastal line that stretches eastward to the Makassar Strait and southward to Balikpapan Bay. Nusantara also has four islands (Benawa Besar, Batupayau, Jawang, and Sabut) located to the north of Balikpapan Bay. The city boasts a hilly landscape and was previously an industrial forest, with its concession owned by Sukanto Tanoto.

Zoning


Nusantara encompasses an area of 2560 km2 designated as National Strategic Area (Kawasan Strategis Nasional, KSN), with 68.56 km2 as the Main Governmental Zone (Kawasan Inti Pusat Pemerintahan, KIPP), 561.80 km2 as the Capital City Area (Kawasan Ibu Kota Negara), and the remainder as the Capital City Development Zone (Kawasan Pengembangan Ibu Kota Negara). The Nusantara metropolitan area will include the surrounding regencies and cities of East Kalimantan, such as Balikpapan and Samarinda.

Government
Nusantara is managed by an agency known as the Nusantara Capital City Authority (Otorita Ibu Kota Nusantara). Its structure differs from that of other cities in Indonesia, which are considered autonomous, self-governing entities separate from the central government. In contrast, the Capital City Authority is an agency directly accountable to the central government. It operates at the ministerial level and its Head is a cabinet-level official. Unlike governors, mayors, and regents, who are popularly elected in regional elections, the Head and Deputy Head of the Authority are appointed by the President.



Since March 2022 to June 2024, the authority had been under the leadership of Head Bambang Susantono and Deputy Head Dhony Rahajoe. On June 2024, Bambang Susantono and Dhony Rahajoe resign from their respective roles ahead of the inauguration of the city. Their motives is said to be personal reasons. Currently the head of the Nusantara Capital City Authority is Basuki Hadimuljono who is also the head of the Ministry of Public Works and Housing of Indonesia

The Capital City Authority announced that Nusantara would have special form of local governance and the administrative division of Nusantara would be different from other regions in Indonesia.

Transport
To achieve the goal of having 80% of transport supported by non-private means, a comprehensive public transportation network is planned for the new capital. The city's development focuses on creating dense, walkable areas and will feature a citywide network of cycling paths, two rail lines for a metro system, a bus rapid transit system, and autonomous minibuses as feeder services.

An automated guideway transit system will connect the new capital to the Balikpapan highway. Additionally, a new intercity and regional rail system will be constructed to link the new capital with neighboring cities such as Samarinda and Balikpapan, forming part of the broader Trans Kalimantan Railway network that will connect the entire Indonesian side of Borneo Island with rail service.

A planned toll road spanning 47 km (29 mi) will be built to connect the government central area with the VVIP airport and Balikpapan. Nusantara will also be served by the nearby Aji Pangeran Tumenggung Pranoto Airport located at Samarinda, the neighbouring city of the new capital, as well as Balikpapan's Sultan Aji Muhammad Sulaiman Sepinggan Airport. To support the two airports serving Nusantara, a new VVIP airport will also be built in Penajam.

Twin towns and sister cities
Nusantara is twinned with:
 * 🇰🇿 Astana, Kazakhstan (2023)