Nusantara- The driver of Indonesia’s new economy

President Joko Widodo first suggested a new capital in 2019. The cost of creating the new capital is anticipated to be $33 billion. Indonesia has even passed legislation to begin the development of new capital, which is expected to be completed by the first quarter of 2024. The bill states that the purpose would be to develop Nusantara a city, which is “a driver of Indonesia’s economy in the future, as well as a city that is a symbol of national identity and represents the diversity of the Indonesian nation”.

Nusantara will serve as a hub for government and green innovation. Samarinda, as the historical center of East Kalimantan, will be the base for the revitalization of the energy sector, while Balikpapan, as the muscle, will serve as the focal point for the growth of the downstream oil and gas industry and logistics. Nusantara is also intended to be the capital city's center in the future, with a smart city system that is connected to harmony.

"Nusantara is not only a smart city but also a modern place that meets world-class infrastructure standards", the head of Nusantara’s infrastructure development at the Ministry of Public Works and Public Housing (PUPR), Danis H. Sumadilaga, said.