Indonesia passes law to move capital from Jakarta to Borneo

New capital to be named Nusantara, Javanese name for Indonesian archipelago.

JAKARTA (AA) – Indonesia’s parliament has approved a bill to relocate the nation’s capital from Jakarta to East Kalimantan province on Borneo island, an official said on Tuesday.

“The new capital city has a central function and is a symbol of national identity, as well as a new economic center,” Planning Minister Suharso Monoarfa said in the parliament after the bill was passed.

According to Monoarfa, the new capital will be named Nusantara, a Javanese name for the Indonesian archipelago chosen by Indonesian President Joko Widodo.

The planned area of the new capital is 256,142.74 hectares (632,941 acres), according to the new law.

The legislation gives the 489 trillion-rupiah ($34 billion) project the legal basis to proceed before the 2024 presidential election.

Jakarta is one of the world’s most densely populated cities, home to more than 10 million people.

The city is prone to floods and is sinking due to subsidence, caused by millions of residents using groundwater.

On Aug. 17, 1945, Jakarta became the de facto capital city of the Republic of Indonesia after the country declared independence.​​​​​​​​​​​​​​


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