Due to the rapid “sinking” of the current capital Jakarta caused by natural disasters, infrastructure issues, and excessive groundwater extraction, Indonesia is nearing the final stages of relocating its capital.

President Joko Widodo announced that 80% of the relocation to the new capital, named “Nusantara” and located in East Kalimantan province on the island of Borneo, has been completed. He also stated that the construction of the airport is expected to be finished by August.

Jakarta Is Sinking for Several Reasons

The Indonesian government previously stated its intention to move the capital from Jakarta, located on Java Island, due to its population of 10 million, frequent natural disasters such as annual floods, infrastructure challenges, and the rapid sinking of the city’s northern regions caused by excessive groundwater extraction.

Widodo’s administration also emphasized its goal of reducing the burden on Java Island, which hosts more than 60% of the country’s population and over half of its economic activities, and redistributing national wealth more evenly across the country.