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. So, what does this massive relocation mean for Indonesia, particularly with regard to the country’s energy future?
xpert 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 growth, along with a much-needed upgrade to the island’s basic infrastructure.
The government has already announced that the design of the new capital features a “forest city” concept to avoid Jakarta’s well-known traffic, pollution and water problems.
The goal is to prevent sprawl and uncontrolled growth. To preserve Kalimantan’s forested land, 50 percent of the new capital will be reserved for green spaces. This will be coupled with integrated public transport, pairing electric vehicles and a railway system.
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