Relieve some of the burdens on Jakarta and the island of Java

There are a number of reasons why the Indonesian government decided to relocate its capital. One of the aims of moving the capital is to relieve some of the pressures on Jakarta and the island of Java.

The President also stated that the existing capital city, Jakarta, must be shifted due to the heavy burdens it carries as the hub of government administration, commerce, banking, trade, and services, as well as (housing) Indonesia's largest airport and seaport. Indonesia's President Joko Widodo had said earlier, "The burden Jakarta is holding right now is too heavy as the centre of governance, business, finance, trade and services".

Furthermore, Java has 60% of the country's population and accounts for more than half of its economic activity. Kalimantan is about four times larger but accounts for less than a tenth of the total GDP. As a result, after performing thorough research over the last three years, the government has determined that the best location for the future administrative capital city is in a part of North Penajam Paser Regency and a portion of Kutai Kertanegara Regency in East Kalimantan Province.