Indonesia has finally passed a new law that would officially transfer its capital from Jakarta to Borneo. The new law comes after years of planning and setbacks.
The law, which was passed on Tuesday by the House of Representatives, is a major legal step for the long-planned relocation. Under the new bill, the new capital city will be called Nusantara, which is Javanese for the word archipelago.
Indonesia has long planned to move its capital from Jakarta, one of the world's largest and most crowded megacities, into a more undeveloped and more spacious location. Jakarta is currently straining under the weight of its population and exponential growth, with streets packed with people and pollution.
The city is also one of the world's fastest sinking cities amid the rising sea levels. Almost half of the city sits below sea level, and scientists believe that the entire area may become submerged in water by 2050.
Indonesian President Joko Widodo previously announced his plans of finally relocating the capital in 2019. The plan is a major undertaking for the government as it will require a massive budget and substantial political will. Under the new law, a budget of $32 billion has been allocated for the relocation.
Planning Minister Suharso Monoarfa said after the bill's approval that moving the capital to a new location will be essential as it will become the "symbol of the identity of the nation" and the new "center of economic gravity."
The new law lays out how the project will be funded and managed in the coming decades. While the Finance Ministry has said that the first phase of the relocation would take place between 2022 and 2024, there has been no timetable for the finalization of the project. According to Monoarfa, the project should be completed sometime in 2045.
Once enough infrastructures are built within the next decade, embassies, government offices, and headquarters of some international organizations are expected to relocate.
The relocation plans have faced criticism in the past, both for their proposed design and their potential impact on the environment. Last year, the proposed design for the state palace was slammed by critics, with some calling it exaggerated and "campy." Earlier in the month, a new, more nuanced design was published.
Environmental groups have also called on the government to reconsider its plans given the potential impact of the relocation on the rapidly-disappearing jungles of East Kalimantan.
Apart from Indonesia, other countries have announced plans to move their capital due to population and congestion concerns. In 2016, Egyptian President Abdel Fatah al-Sissi announced plans of moving the government to a "New Administrative Capital," which will be built at the cost of $40 billion.
