Nusantara: Indonesia's quest to build an inclusive, global capital

JAKARTA: Nusantara will replace Jakarta as the administrative capital of Indonesia in August 2024. Located in East Kalimantan and bordering Borneo, the administration of outgoing President Joko Widodo has drawn up an ambitious plan to build a sustainable and liveable city.

"We want to have an ecosystem that demonstrates the beginning of a city that is green, smart, inclusive and resilient, all and all a sustainable city," said Head of the Nusantara Capital Authority (OIKN), Bambang Susantono during the "The future of Jakarta after IKN" in Ancol, Jakarta on 17th February.

Nusantara aims to achieve net-zero emissions by 2045. Covering an area of more than 256,000 hectares, the city will be a low-carbon city using 100% renewable energy, with 'green vehicles' to be unveiled during the 79th Independence Day celebrations in Nusantara, during the launch of the new capital.

According to Bambang, Nusantara is the only city in Indonesia with a climate change roadmap, which was recently launched during the United Nations Climate Change Conference (COP28) in Dubai last December.

Similar roadmaps will also be set up to tackle biodiversity and Environmental, Social, and Governance (ESG), with a committee for ESG already established, the first city in the country to have one.

"We also want to build a city that centers around its people, it will not only be liveable, but it will also be loved by its citizens," he added.

One step the OIKN has taken to achieve this goal is to sign a Memorandum of Understanding (MoU) with Finland. "Finland is the happiest country in the world, we will learn from them how to make their people happy," Bambang said.

He said international support had been crucial in building Nusantara with the cooperation of various stakeholders across industries.

Agencies such as the United Nations Entity for Gender Equality and the Empowerment of Women (UN Women) and the United Nations Children's Fund (UNICEF) will help ensure that the new capital is women- and child-friendly, Bambang said.

Indonesia has also signed a MoU with South Korean automotive giant Hyundai to collaborate on air taxis as part of its efforts to become a smart city. The trial of the five-seater vehicle will be unveiled in July 2024.

According to Bambang, Phase 1 of Nusantara's development will consist of four groundbreakings between September 2023 and January 2024. The eight main sectors to be developed include hotels, residences, retail and logistics, offices, education, health, energy and transport, and green areas.

By the end of this year, OIKN aims to develop an area of 1,000 hectares with a complete ecosystem to serve as an administrative area with support facilities for over 260,000 residents. By 2045, Bambang said, Nusantara will be a "global city for all" with a population of over 1.9 million.

Soon to be stripped of its capital status, Jakarta will remain as the business and financial hub for the country of 273 million. "I believe Jakarta will become a business centre and a financial superhub, while Nusantara will become a new economic centre and a government centre," Bambang said.

Bambang said the idea of establishing a financial superhub had been implemented by Kazakhstan with Astana, the new capital after Almaty, adding that Indonesia and Kazakhstan had signed a MoU to establish Nusantara and Astana as sister cities.

As for what Malaysia can look forward to, closer proximity will lead to greater regional economic integration between Malaysia and Indonesia, as the two countries share a 1,900-kilometre border on the island.

Malaysia is already looking to Nusantara as a potential export market for its green electricity, with Natural Resources, Environment and Climate Change Minister Nik Nazmi Nik Ahmad hoping that Sarawak can play a major role in supplying green power to Indonesia's new capital.

A major boost to tourism between the two states is also imminent, as Nusantara could act as a new gateway for visitors travelling to Borneo and other major cities in Malaysia.

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