It has been decreed that Indonesia’s capital city is relocated to the island of Borneo. In the light of this transfer comes various development to be transported and distributed to the future capital.
Indonesia’s current population spans over 267 million inhabitants, making it the most populated country in Southeast Asia. Aspects of Indonesia’s economics, trades, and transportation are concentrated in its current capital city, Jakarta. Jakarta itself is the most populated city in Indonesia, with a population of over 10.5 million inhabitants. Jakarta’s position as the center of Indonesia’s government and also its center of business makes it highly susceptible to overpopulation. Overpopulation, along with economic distribution and environmental urges prompted the relocation of the world’s fourth most-populated country’s capital.
In response to said circumstances, Indonesia’s president, Joko Widodo declares the matter to be a national agenda to move Indonesia’s capital city. The location of the newly-planned capital city is located on the island of Borneo, in the regency of Penajam Pasar Utara and the district of Kutai Kertanegara. Several reasons behind the selection of both districts to be the new capital area includes minimum risk of natural catastrophe, and strategic location on the center of the archipelago. Several
reason behind the selection of both districts are minimal risk of natural catastrophe, complete infrastructure, possession of government-owned lands, and strategic location in the center of the archipelago. Additionally, Indonesia encourages for the development of other regencies to be more evenly distributed. One of the essential factors for the capital transfer plan is the need for substantial funding, which sums up to IDR 466 trillion ($32.7 billion).
Indonesia’s capital city relocation significantly impact various business sectors, proven by the rise of Indonesia Stock Exchange’s infrastructure, utilities, and transportation index and property, real estate and building construction index to boot. Other enterprises join in the relocation as plans of business expansion to the new capital emerge. Among them is the consulting firm McKinsey & Company, having won a technical feasibility study bid for the location of the new capital. This provides opportunities for the logistics sector to contribute in the transfer.
Consequently, the public eye turned to the future capital: East Kalimantan. Contrary to its newly-ordained position, East Kalimantan is the historic site of one of Indonesia’s earliest ancient kingdom: Kutai Martadipura. The population of the interior of East Kalimantan consists largely of Dayak tribes. The island is also home to the orangutans and various other indigenous species, covered with dense tropical rainforest areas such as Samboja Lodge and Kutai National Park.
East Kalimantan also includes a number of islands in the Celebes Sea, including the Derawan archipelago, which is rich for its biodiversity. The lake in Kakaban Island is habitat to thousands of jellyfish and tropical fishes. A hidden gem of its own, Maratua Island provides reef dive sites and turtle-nesting grounds. Alas, it is without a doubt that East Kalimantan is Indonesia’s exotic paradise.