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ESG & sustainabilityDecember 20 2023

Indonesia’s capital ambitions risk financial and environmental shortfalls

Indonesia’s ambitious plans for its new capital, Nusantara, are underway, yet there remains uncertainty of whether the president’s ambitious vision will be realised. With questions over its green credentials and how the city will be financed.
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Indonesia’s capital ambitions risk financial and environmental shortfallsNew build: work has been underway on Nusantara since August 2022. Image: Bloomberg

Indonesia’s president Joko Widodo first touted the prospect of moving the country’s capital away from the packed streets of Jakarta in 2017. The search for a location began, with a site in East Kalimantan, part of Borneo, eventually being chosen.

The island of Borneo — which is also home to part of Malaysia and the entire state of Brunei — appealed for several reasons. The Kalimantan province has a total population of around 16.5 million, with just 3.8 million living in East Kalimantan. The location is also outside of the Ring of Fire, reducing the risk of disruption from earthquakes.

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Kimberley Long is the Asia editor at The Banker. She joined from Euromoney, where she spent four years as transaction services editor. She has a BA in English Language and Literature from the University of Liverpool, and an MA in Print Journalism from the University of Sheffield. Between degrees she spent a year teaching English in Japan as part of the JET Programme.
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