Being a symbolic representation of a country.
A state's capital is more than just the seat of the government.
From housing for an embassy is to creating jobs for government workers.
The capital is home to a nation's evolving history.
And capitals of the countries remain the same for centuries.
But from requiring new infrastructure to needing a more centralized location.
There are some countries where authorities choose to move the seat
of the government to an entirely different city.
And the same goes with Indonesia.
Where the government has announced its plans
to shift its capital from Jakarta to East Kalimantan.
The new name given to the capital would be New Santora.
Join us today as we'll be exploring why Indonesia is doing
so and why they've chosen East Kalimantan over Jakarta.
What's the problem with Jakarta?
Jakarta.
Indonesia's capital since independence, is home to around 10 million people.
The city has faced a number of urban issues, ranging from overpopulation
to pollution.
Apart from that, Jakarta has some of the world's most crowded roadways.
One big issue regarding the city's long term viability was that it is located on
marshland on the island of Java and has been progressively sinking.
According to studies, the entire city might collapse
by 2050, and flooding is a recurrent issue.
President Joko Widodo indicated in August 2019
that the capital would be relocated from Jakarta to a new location.
And finally the government announced its final plans in January.
2022.
Jakarta is a beautiful and world class city with all the amenities available.
Still, the government decided to shift its concentration to an entirely new city.
Although overpopulation, uncontrolled traffic and environmental issues
are the key factors,
there are some other reasons to push the government to take such a big decision
after getting a green signal from the government on January 18th.
2022.
Indonesia's new capital development
may begin ahead of the country's planned move from Jakarta to East Kalimantan,
which is scheduled in 2024 and will be completed by 2026.
In 2019 it was revealed that Indonesia would be building the new capital,
which is expected to cost more than $35 billion.
The word news Antara, which means Archipelago has been
officially announced by the Government as the name for the future capital.
The Government intends to develop the new capital into a low carbon
super hub that will help the health care and technology industries and encourage
sustainable growth across Indonesia and beyond the island of Java.
However,
the development of the new capital would necessitate significant investment,
which will provide several prospects for international enterprises.
The government will pay just under 60% of the $35 billion in construction
costs, with the remaining 40% coming from the private sector.
As part of the steering committee for the new capital.
President Joko
Widodo has organized a group of political and commercial developers to serve on it.
Among those who have spoken out are Abu Dhabi, Crown Prince Mohammed
bin Zayed Al Mann and former British Prime Minister Tony Blair.
So here the question is why actually Indonesia is doing this
Let's go deep and find out some interesting facts.
Why is Indonesia moving its capital?
Sukarno, Indonesia's first president, proposed the idea of relocating
the country's capital in 1957 and the idea gained traction.
However, he desired a purpose built capital placed in the geographic
heart of the country.
In the city of Pella,
in Korea, in Central Kalimantan province, rather than in Jakarta.
Eventually this proposal was scrapped and Jakarta was designated
as the country's capital. During the 1960s.
Susilo Bambang Yudhoyono, Indonesia's sixth president,
has also raised the notion of establishing a new political
and administrative center in response to the country's overcrowding concerns.
Joko Widodo, his current campaign to establish a new capital, started
shortly after being elected to a second five year term as president of Indonesia.
It has been said that the move of Indonesia's capital
is intended to solve economic inequalities in the country
and ease the pressure on Jakarta and Java, where it is now located.
An estimated population of 152 million people in Java
and 2020, representing 56% of Indonesia's overall population
of 271 million people, according to the 2020 census.
Because of Java's population advantage over the other islands, around
60% of Indonesia's GDP is concentrated on the island,
with Jakarta accounting for one fifth of the country's total GDP.
As the provinces have a plethora of resources
ranging from coal to gold to oil, So that's why
most of the riches and business tycoons reside in this region.
East Kalimantan, on the other hand, has the second highest gross regional
domestic product GDP per capita in Indonesia,
with 125 million rupiah.
8,700 USD per capita, trailing only Jakarta
Therefore, the government thinks that relocating the capital to East
Kalimantan would spur increased investment in Indonesia's outlying provinces,
particularly those in the country's eastern region.
Similarly, environmental and land issues are also a big worry
in relocating the country's capital
a sinking Jakarta
rapid urbanization in Jakarta, which serves as the nation's capital
and the hub of government, commerce, finance, trade, and services
has resulted in the city being the world's most populated metropolitan
agglomeration, with a population of around 10 million people
due to a lack of investment in physical infrastructure.
Jakarta has long been plagued by traffic congestion
and floods that have become synonymous with the city's reputation.
Jakarta loses more than $6 billion in productivity each year
as a result of traffic congestion and more than $500 million due
to devastating floods because there is no piped in drinkable water in the city.
Inhabitants must pump groundwater,
which leads to over extraction and the gradual collapse of the soil.
Parts of Jakarta are sinking at a rate of around 25 centimeters per year,
and as much as a quarter of the capital may be underwater by 2050.
Moreover, due to climate change, this might become more prevalent.
So shifting the country's
capital to a new location is considered a perfect decision by the government.
Now let's take a look at how foreign investors can benefit
from this new project.
What opportunities are there for foreign investors?
The new capital, New Centera, will be built on a 632,850 acre plot,
about four times Jakarta's size As a result,
this massive undertaking will provide chances for investors
from a wide variety of businesses to participate.
It's challenging to comprehend the enormous scope of the progress,
but according to an estimate, approximately three times
the size of New York City, more than 200,000 hectares of inland
forest will be turned into Indonesia's new administrative hub
for a new center to develop into a world class city.
Soft and hard infrastructure will be required.
For example, urban utilities toll manufacturing, seaports,
airports and network and communications infrastructure will be required.
This will be accomplished in stages, beginning with the presidential palace
then moving on to the central government headquarters,
housing areas for government employees and the headquarters
for military and police forces and other locations.
Smart City Development.
New Centera deserves to be remembered as a smart city,
which means that it will use technology to increase operational efficiencies
and deliver a higher level of service to its citizens.
The government intends to use the Internet of Things
to give linked solutions to the general population,
ranging from traffic flow monitoring to energy saving and conservation.
A total of 75% of the projected site for the capital city
will be green open space, of which 65% will be designated
as protected land, and 10% will be used for agricultural production.
Maritime infrastructure in 2014 Widodo stated aspirations
to transform Indonesia into the heart of Indo-Pacific maritime activity
through the global maritime fulcrum
GMF master plan which he initially unveiled in 2013.
The proposal called for an investment of more than $6 billion
to expand ports in the world's biggest archipelago
and cut logistics costs for companies doing business in Indonesia.
It is also hoped that this will promote the growth of industrial production
outside of Java, notably in the eastern areas of the country
where large scale industrial activity has remained relatively low.
Despite this.
Indonesia's eastern regions account for 64% of the country's total land area.
Why are environmentalists concerned
Environmental organizations have raised worry that the proposed
project may have the unintended consequence of exacerbating
pollution and other problems in Kalimantan.
Still, right now, the only concern is getting the capital relocated.
Known for its biodiversity, the region is home to a variety of animal
species, including orangutans, sunbathers and long nosed monkeys,
all of which can be found in the region's rainforests.
However, critics have expressed concern that this move
from Jakarta to Kalimantan might result in widespread deforestation
and the extinction of the region's biodiversity.
The flagship see tall program,
the C Tall Program, is the government's flagship initiative under the GMF
to eliminate the pricing differential between the main islands of Indonesia
and the smaller isolated islands,
particularly those in the eastern equatorial Pacific.
As a result of the expansion,
the number of transit ports has expanded from 31 in 2016
to 114 in 2021,
and the number of boats has climbed from six to 32.
As a result, sea freight has grown from less than 100,000
tons to more than 350,000 tons in recent years.
Moreover, airports and seaports in Indonesia are now accessible
to 100% foreign ownership under the country's favorable
investment list, up from 49% under the previous list.
In addition, airport related services and maritime facilities are now available
to international investors that hold 100% of the stock.
Plans to go for renewable energy.
Indonesia will require a significant amount of private money
to accomplish its goal of a 25% renewable energy mix by 2025,
which is now at 14.7%
However, because the new capital is being constructed from the ground up,
there are several opportunities to establish new renewable energy projects.
East Kalimantan Province has a significant amount of clean energy potential.
According to research conducted by the Ministry of Energy and Mineral Resources,
which indicates that the combined sources of wind power, biofuels solar power,
hydropower and other renewable energy sources can generate up to 20
gigatonnes of electricity.
Solar energy accounts for 65% of this total.
With hydroelectric power accounting for 26%.
In addition,
geothermal energy is another possible renewable energy source in the province
and is currently being explored with everything planned and approved.
Indonesia is taking one of the most crucial steps
that will definitely impact the country's growth, either positively or negatively.
So let's hope things come in their favor.
And Indonesia successfully rewrites its history.
And that's all for today's video.
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