News 011922

News 011922


The Capital of A Sustainable Nation

Tuesday, January 19th 2022
The relocation of the Indonesian National Capital from Jakarta to East Kalimantan requires careful preparation and planning so that the mega-projects for the development of the new State Capital can be implemented properly.

As quoted from, the Director of CSID, Mohammed Ali Berawi, gave his opinion regarding this issue. Moving the country’s capital to East Kalimantan to address the problem of population density, inequality in national economic growth, and various urban problems in Jakarta.

Indonesian Regional Development Planning Agency or Bappenas (2019) revealed that the concentration of the Indonesian population on Java island reached 56.54 percent. On the other hand, the concentration of economic activity causes inequality in the contribution of the national economy, with Jabodetabek GDP contributing 20.85 percent of the national GDP.

The high regional density is also coupled with high urbanization growth, especially in the Jabodetabekpunjur area. Economic activity due to regional and population growth resulted in the highest land conversion in Java. The condition of water availability, especially in DKI Jakarta, is increasingly threatening the sustainability of areas with high density and increasing urban burdens which have an impact on high congestion rates, decreased river water quality, flood disasters, and high rates of land subsidence.

The development of new cities requires comprehensive planning that is able to answer the challenges of the pace of urbanization, such as environmental crises and socio-economic crises. The development of technology is a tool to create a smart city as a solution to urban problems through the application of urban technological innovations. A sustainable approach is also important to ensure the fulfillment of future needs through the sustainable use of resources.

The development of a smart city for the State Capital aims to produce a resilient and sustainable city by producing better city services, including improved transportation, water resources, waste disposal, to health services. Smart cities can improve a city’s ability to use resources efficiently, make public transportation more attractive, and provide data to planners and decision makers to allocate resources appropriately. Or in other words, the smart city concept contributes to the formation of a high-quality, healthy and regenerative built environment that is modeled on the basis of a circular economy and with an overall positive impact on the environment.

Planning for the National Capital Region is expected to be able to represent the nation’s superior progress and a catalyst for improving Indonesian human civilization through the creation of smart and modern urban areas by creating quality, sustainable, and resilient urban spaces.

The National Capital is the embodiment of the concept of Indonesia-centric development by building and spreading centers of productivity and economic activity.

Based on CSID research (2020), the function and proportion of land use for the development of the State Capital area based on a sustainable and resilient smart city consists of 67.43 percent of green open space, 14.32 percent of housing, 9.21 percent of infrastructure, 2.00 percent developed for commercial areas, 3.03 percent for recreational and cultural facilities, 2.00 percent for community facilities, 1.44 percent for government facilities, and 0.58 percent of land area for industry.

As with megaprojects in general, the development of the National Capital based on a smart sustainable and resilient city will certainly cost quite a lot of development costs. In comparison, the construction of capital cities of similar countries in other countries, such as Sejong in Korea, costs up to IDR 289 trillion and Putrajaya in Malaysia costs up to IDR 117 trillion.

Of course, the variation in the amount of funding spent depends on the planning and design of development in each region. Limited funding from the Indonesia’s State Revenue and Expenditure Budget for the allocation of infrastructure development results in a financial gap in project funding. Therefore, to overcome this, through Indonesian Presidential Decree No. 38/2015, the government facilitates the involvement of the private sector in investment funding schemes and development implementation.

As with mega-project developments, which are prone to cost overruns and delays in project development time, relocating the State Capital requires careful preparation in terms of planning and executing project implementation. Maturity in terms of technical, financial, and good governance needs to be done to carry out the megaproject development in this region.

From the technical side, the development of a smart city that is resilient and sustainable can be implemented using local components (domestic component level) both material and human resources (HR). For alternative project funding, it is carried out through investment cooperation and the utilization and management of government assets in Jakarta can be carried out by the Indonesia Investment Authority (INA). In addition, implementing accountable and prudent good governance processes in the development process is an important factor in the development of this mega-project. In other words, these three things will determine how far the level of success in the development of the National Capital City.


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