Expert analyses of Indonesia’s plan to relocate its capital have been floating around since President Joko “Jokowi” Widodo announced the intended location. The capital will be moved from densely populated Jakarta to the forested environment of North Penajam Paser and Kutai Kartanegara, East Kalimantan. The 10-year relocation process is expected to move about 1.5 million people, including key civil servants and their families. The impact will be similar to moving the entire population of Semarang in Central Java out of Java. This would be a monumental project for any government, with complex, overlapping planning requirements. So, what does this massive relocation mean for Indonesia, particularly with regard to the country’s energy future? We see two contrasting impacts. First, for the host island Kalimantan, it could mean a boost for local economic gro...

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