Relocation of Indonesia’s Capital City and the Impact into Sabah and Sarawak Developmentalism

Ariyanto Nugroho
16 min readMar 28, 2024

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Ariyanto Nugroho

Abstract

In 2019, President Joko Widodo announced the relocation of Indonesia’s new capital city in East Kalimantan. The exact location is on the border of Kutai Kartanegara Regency and North Penajam Paser Regency, East Kalimantan. The relocation is targeted to take place during 2020 to 2024. Even so, the pandemic forced this project to experience obstacles, but the initial plan was still implemented. This relocation is because Jakarta, as the old capital, has been physically and socially overloaded, making it unfit to be the capital again. The potential for natural disasters such as earthquakes also led to the relocation of this capital city. In addition to minimal the natural disasters, the location of the new capital city in East Kalimantan is also geopolitical, because it is located in the middle of Indonesia. The relocation of the capital city alone is estimated to have an impact on an increase of 1.7% in Indonesia’s economic growth. So this happy news, was greeted by Malaysia with great fanfare. The move of Indonesia’s capital city in East Kalimantan will stimulate the economic development of Sabah and Sarawak, such as trade and tourism. So then Malaysia offered project funding for the construction of this new capital city. This was later appreciated by President Joko Widodo. However, behind the excitement of this good news, it is necessary to properly prepare for the construction of the new capital city of Indonesia as the world’s number one class city. So how this Capital will be built and its impact on Sabah and Sarawak are important things to study. This is something I will try to write about in this article.

Keywords: new capital city of Indonesia, East Kalimantan, Sabah, Sarawak, developmentalism, post-modernism

Introduction

The capital city, apart from its role as the heart of the center of bureaucracy, is also a symbol of how advanced and civilized a country is. Indonesia in August 2019, through President Jokowi, planned to relocate the capital city from Jakarta to East Kalimantan. The location is on the border of Kutai Kartanegara Regency and North Penajam Paser Regency. This relocation is because Jakarta is already overloaded physically and socially, so it is no longer adept of being the capital city. Another reason is that Kalimantan is an island with minimal earthquake risk and its position in the middle of Indonesia will reflect Indonesia’s desire to continue the decentralization project. That Indonesia is not only Java. That according to the Institute of Development Economy and Finance (INDEF) this project will have an impact of a 1.7% increase in economic growth for Indonesia, if implemented.[1]

Other proposed capital candidates, such as Yogyakarta, Purwokerto, and Malang, were unable to compete with East Kalimantan. In the future design of the capital space, the government will use the concept of Nagara Rimba Nusa/State of the Forest and Archipelago, and Nagara Seribu Galur/State of a Thousand Weaving. This will make Indonesia’s new capital city, a city with a biological and cultural concept. A new post-modernist city in a world full of meaning. In addition to being environmentally friendly like a forest, this city will also carry a cultural theme, namely galur or weaving. It is a symbol that Indonesian society is a plural society united through understanding.

Through this, Malaysia then by Prime Minister Ismail Sabri Yakoob then met with President Jokowi at the State Palace, intending to help the Indonesian project to build a new capital city.[2] President Jokowi also welcomed this Malaysian initiative. Other parties who wish to cooperate with Indonesia to build this new capital city are the European Union and the United Arab Emirates.

For Malaysia, the move to the new capital city on the island of Kalimantan will have a lot of influence on the economic growth into Sabah and Sarawak. So far, Sabah and Sarawak are considered underdeveloped regions. The economy of Sabah and Sarawak is also emphasized to be smaller than that of Samarinda and Palangkaraya. The proximity of Sabah and Sarawak to the new capital, both by land and by sea, will certainly cause the economies of these two regions to grow. So far, Malaysia has not been able to stimulate Sabah and Sarawak to become developed regions due to the trend of separatism. However, through the facilitation of Indonesia, which will have a new capital city in East Kalimantan, Sabah and Sarawak will be emerge on their own. So this is really appreciated enthusiastically by the Malaysian people. That politically, economically, socially, and culturally this is a moment of rennaissance for Kalimantan. That the future of an advanced and just Indonesia starts from here. That Sabak and Sarawak will become developed regions starts from here.

But this plan is not without its obstacles. As one of the most developed cities in the world, Indonesia’s new capital city must accommodate the SDGs trend. So this paper will also elaborate on the opportunities and challenges of institutionalizing the SDGs in the new capital city of Indonesia.

Theoretical Approach: Regional Planning

According to Farida’s writings, an effort to move the nation’s capital requires a comprehensive quest in several contexts, namely: Economic Potential, Institutional Aspects, Spatial Planning, then Social and Environmental Aspects.[3]

The economic potential of Kutai Kartanegara Regency and North Penajam Paser Regency has not been fully exploited. Even though the infrastructure is complete, this area is far from airports and trade ports. So this potential can be developed. Institutionally, the purpose of moving the capital was for political and economic decentralization from Java. The author believes that the people of Kutai Kartanegara Regency and North Penajam Paser Regency can already become people who comply with regulations. Then also, spatial planning, I think Indonesia already has a specific spatial design. It’s just a matter of building infrastructure later, after the COVID-19 pandemic is over. Then the social and environmental aspects. We think that this article will also provide recommendations on how the SDGs are so important for the new capital city of Indonesia. The opportunities and challenges that will be faced are evidence of the quality of this Indonesian capital in the future. We wait for the time, that people of Kalimantan includes Sabah and Sarawak could do synergy over to let this new spatial and political room grow also stimulous developmentalism.

Methodology

This paper is built based on the post-positivist paradigm of writings from journals on regional planning and capital relocation, in the period of publication between 2015–2022. Also on internet articles. The author’s focus is also on the concept of regional planning symbiotic with the relocation of new capital city of Indonesia to the developmentalism of Sabah and Sarawak. At the same time as supporting that the relocation of the capital is a creative and post-modernist solution in Indonesia’s political and economic governance, which then embraces Malaysia to build Kalimantan together.

Then the research method uses an interpretive and holistic scheme — where research conclusions will be found from an understanding of the entire content of the writing.

New Capital Merits

Since the Unitary State of the Republic of Indonesia (NKRI) proclaimed its independence on August 17, 1945, there has never been a discourse to build a city as the nation’s capital or national capital. The big cities that are currently the nation’s capital (Jakarta) and provincial capitals are all or most of them a legacy of Dutch colonialism. Much different from the heyday of the kingdoms in the archipelago before, before experiencing colonialism, almost all owned and built a capital city (city of kings). For example, Majapahit has a relic of the Trowulan site which is considered the center of its government, and Mataram with Yogyakarta as the center of government. Changes in the center of government often occurred in the royal era. If a kingdom is hit by a disaster, the center of the kingdom must be moved because it is considered to have been hit by a God’s curse. The change of kings is carried out along with the transfer of the center government, especially if the change is through a struggle.

As with the Unitary State of the Republic of Indonesia, it seems that the leaders of the Unitary State of the Republic of Indonesia at the beginning of independence had a philosophy: there was no such thing as “ratan” and “narimo”. In the sense that instead of building a new capital city and a new state palace, the existing ones are used, namely using the former colonial governor’s office as a state palace. This condition is considered reasonable and understandable because Indonesia, as a newly independent and colonized country for more than 3 centuries does not yet have the ability to develop.

Many countries have carried out the relocation of the national capital, for various reasons. The following example illustrates that the relocation of the national capital is an event that is not taboo and is carried out with the aim of solving problems for the good and progress of the nation and state.[4] As one example, firstly, the capital Brasilia is located inland, because the old capital of Rio de Janeiro is already too crowded. Second, the South Korean government moved its capital city from Seoul to Sejong in 2004, even though Seoul means capital city in Korean. Third, traditional capital cities are fading economically due to rival cities, such as Nanjing, which is fading away by Shanghai. Fourth, due to the decline of a dynasty or culture, finally the existing capital city faded and lost in prestige, as happened in Babylon and Cahokia.

The relocation of the capital city in the Republic of Indonesia is very possible because it is explicitly regulated in the Constitution of the Republic of Indonesia and its amendments. In Chapter II Paragraph 2 of the Constitution of the Republic of Indonesia it is written: The People’s Consultative Assembly convenes at least once every five years in the nation’s capital. In the Constitution there is no article that mentions where and how the capital city of the country is regulated. Thus, there is high flexibility in regulating, including moving the national capital. In relocating the national capital, of course, a strong and basic reason is needed about the effectiveness of its function.

There is a discourse on the first alternative of relocating and rotating the capital, that the condition of Jakarta as the capital of the country which has been too long until now is not ideal for equitable distribution of national development. Like the iron law of absolute power in the hands of one person, without rotation. If we look at everything in Jakarta, starting from the capital city, government offices, state-owned enterprise headquarters, trade centers, population concentrations, industrial centers and others. This condition is certainly not ideal, one function often hinders another function, namely social justice for all Indonesian people. Ideally, some of these functions need to be moved to another city. Moving economic activity will be very difficult, but it is not impossible that the function as a capital city is moved to another city in order to increase the carrying capacity of the old city to be comfortable to live in and provide opportunities for the new city and its area to also develop.

There is a second alternative, the national capital remains in Jakarta by relocating several departments and centers of economic and development activities outside Jakarta, with the aim of reducing Jakarta’s burden. This alternative seems to face more difficulties than the first alternative. Jakarta’s burden is indeed reduced, but it does not mean that it has eliminated the problem because floods are still a threat. Especially if the relocation of the activity center is directed to the south of Jakarta. Floods will increase if it is not followed by land conservation efforts at the top. Through the “momentum” of the floods in Jakarta and its effects are still being felt today, it is better for us to reflect and think. “What if the capital city of Indonesia was really moved?” As the capital city, Jakarta has proven to be overloaded and tends to be no longer worthy of being a locomotive city for the nation of this archipelago.

There are pros and cons regarding the flood incident in Jakarta, as the reason for moving the capital city. The reason is that the flood does not cover the entire area, there are still some that are not affected. For residents who live in areas that are not affected by flooding, of course, they do not agree if the national capital is moved, and want to keep it. If the rationale is narrow and short term, the second alternative is chosen. However, in a broader and long-term thought that Indonesia with its abundant natural resource potential and considerable human resources will become a big and strong country, the alternative of moving the second capital city is weak.

Before determining the alternative to determine the choice of location for relocating the national capital, it is necessary to first find the ideal formulation of the state capital. The literature search on the requirements for the ideal state capital tends not to be found optimally. Based on geographical thinking, the ideal state capital must consider spatial, ecological, and regional aspects; it is necessary, among others, to provide suitable, safe, comfortable land, healthy environment, free from hazards and disasters, adequate accessibility and information flow, availability of land for representatives of friendly countries (embassies), availability of clean water, public facilities, health facilities, the surrounding community is conducive and does not cause disparities between regions. Based on this formula, it is then linked to the geographical conditions of Indonesia to determine alternative locations as a candidate for the nation’s capital city.

Some views on alternatives to relocating the country’s capital that have emerged in the period of May 1998 (reform movement) were Yogyakarta, Magelang, Purwokerto, Malang, and Central Kalimantan. Several alternative locations have advantages and disadvantages. Yogyakarta has the advantage of being the nation’s capital and functioning well. Transportation facilities are already available, namely Adi Sutjipto Airport and Tugu Train Station. Yogyakarta is known as a city of students, and a city of culture; so that it is densely populated and narrow streets make it less likely to be added to the burden, except by improving accessibility, choosing the right location, and not occupying the location of a Dutch heritage building.

Another alternative, if Magelang, the consideration is that it is located in the middle of the island of Java, often known as Pakuning Tanah Jawa, which means that the area is stable. However, its location is close to the still active Merapi Volcano, so the volcanic hazard is a threat. Accessibility can be supported from Yogyakarta and Semarang. Purwokerto has the advantage of the availability of space (land) which is still possible for the development of the capital city. Sea accessibility can be supported from the port of Cilacap, while land access can be reached from Yogyakarta and Bandung. Air transportation needs to be built. Slamet volcano may be a hazard, but historically it is less active. In addition, there is Baturaden as a proper resting place. Malang has a cool mountainous environment, supported by adequate land and air accessibility, and is close to Surabaya. However, Malang is a student city and densely populated, the roads within the city are generally narrow.

The alternative to relocating the state capital to outside Java, the choice is Kalimantan, Palangkaraya, if it is made the state capital, it is estimated that it can last for the next 200–300 years. This is because there is still a lot of vacant land there. And Sumatra, Bukit Tinggi the reason is because it is cool and historic. Batam borders with Singapore, so that prosperity can spread to the new capital. There are already about 6 bridges between the surrounding islands. The advantage of Kalimantan is its location is the center of the archipelago. The land is still very large, so that it can arrange a very ideal state capital layout. The weakness is that the facilities and infrastructure are not adequate, most of them have to build new ones, which means expensive costs. Another weakness is the provision of clean water, forest fires, floods and landslides are hazards that need to be taken into account. Sumatra is another alternative, the availability of land is adequate, the west of Bukit Barisan is prone to earthquake disasters, so the appropriate area is certainly east of Bukit Barisan. Likewise, the possibility of North Sulawesi, East Nusa Tenggara, and West Nusa Tenggara to become the capital. President Susilo Bambang Yudhoyono, welcomes the discourse of moving the capital from Jakarta. According to him, in a democracy everyone is free to have an opinion.

The relocation of the capital should be a study that has been carried out by National Development Council. The Minister of Public Works in the Yudhoyono cabinet, Djoko Kirmanto, once said that the transfer plan might be implemented, as long as the discussion is carried out carefully in the form of economic calculations and other sectors, such as the long-term benefits of the project to build an Indonesia that is more equitable and progresses together. There is also the view of spectator, Ryaas Rasyid that the capital city of the Republic of Indonesia must be moved from Jakarta no later than 10 years or 2016. This is because Jakarta is already so crowded that it is no longer worthy of being the nation’s capital.

Based on this, the state and society should immediately formulate a strategic concept of public policy regarding urban politics in Indonesia from now on. If the government has a merit and is serious about the good and prosperity for the future, it is necessary to study and design a model for moving the capital city from now on.

In addition to the transfer of the country’s capital, there is also the transfer of part of the government’s power, the following examples can be used as an alternative for solving problems related to the nation’s capital city. Some examples of state city relocations include: Bolivia: Succre is still the constitutional capital but the national government has long since been abandoned in favor of La Paz. Then Chile: Santiago is still considered the capital despite its National Congress in Valparaiso, also Netherlands: Amsterdam the constitutional national capital, although the Dutch government, parliament, queen’s palace are all located in The Hague. And South Africa: the administrative capital in Pretoria, the capital its legislature is Cape Town and its judicial capital is Bloemfontein.

Impact Into Sabah and Sarawak Developmentalism

In September last year, there was a discussion in the Malaysian Parliament regarding the Malaysian government’s response to the relocation of Indonesia’s new capital city. When interviewed by the Malaysian Foreign Minister, Saifuddin Abdullah said that Malaysia would gain extraordinary nominal benefits if the Indonesian capital was moved to East Kalimantan.[5] Sabah and Sarawak will benefit mainly from trade, transportation and tourism.

On the other hand, Malaysian Defense Minister Mohammad Sabu also stated that the amount that Sabah and Sarawak would receive when the Indonesian capital was moved to East Kalimantan was also extraordinary.[6] Especially if later the construction of a connecting toll road between Indonesia-Malaysia-Brunei, which has been scheduled by the three countries, the trade benefits due to this connectivity will be more evident.

Tourism potential in Tawau Waters is also a brilliant potential. If the governments of Indonesia, Malaysia and the Philippines are willing to work on tourism potential in the form of shady islands and beautiful atolls in these waters, it is not impossible that they will become the best tropical island tourism zones in the world.

In addition, property entrepreneurs from Indonesia and Malaysia are also targeting investment opportunities to advance East Kalimantan. This was also conveyed by Minister Saifuddin Abdullah in the middle of an interview, that Kuala Lumpur was ready to help in the collaborative development of Indonesia’s new capital city.

In addition, the cooperation between Indonesia, Malaysia and the Philippines to tackle the illegal migration of the Abu Sayyaf Network and Jama’ah Islamiyah in Mindanao will also be stronger, if the three countries agree to secure the Sulu Waters from extremist threats. This task will mainly be assigned to Indonesia, so that Indonesia’s leadership in securing the Sulu Waters will benefit the three countries.

In addition, the Chief Minister of Sabah, Shafie Apdal also stated that he believed that Sabah and Sarawak should be progressive in partnering with Indonesia.[7] In the interview it was stated that Sabah and Sarawak need to negotiate intensively with the Indonesian government without needing to be fixated on Malaysian state policies.

But on top of that, Malaysia will gain an abundance of benefits when Sabah and Sarawak develop economically. These two regions are rocked by the issue of extraordinary separatism. The region is rich in natural resources but is in danger of separating from Malaysia. Not to mention the issue of the establishment of the Bangsamoro Islamic State which wants to be in the Sabah region, has become an unresolved international issue. With the presence of Indonesia in Tawau and Sulu waters, regional security will be organized and more secure. Moreover, recently Indonesia is considered as one of the feared world military powers.

In the future, the author believes that Kalimantan along with Sabah and Sarawak will become a developed region, surpassing Java. Palangkaraya and Samarinda will become transit ports for international-class trade. The Makassar Strait and Tawau Waters will become a bustling and bona fide international trade zone. So that our efforts to advance Indonesia and the island of Kalimantan will be a meaningful struggle. Great fight and will win soon.

Conclusion

Indonesia is building a new capital city in East Kalimantan, which is part of the districts of Kutai Kartanegara and North Penajam Paser. A project that was stalled due to the COVID-19 outbreak, but is believed to be ready to operate in 2024. There are many challenges that Indonesia must face to win the new capital city. However, there was also a lot of support for the completion of the construction of this new capital city. Including Malaysia. Malaysia enthusiastically welcomed that his “older brother”, namely Indonesia, would move its capital city to near Sabah and Sarawak. The region of Malaysia that is poor, underdeveloped, and has separatism challenges. Kuala Lumpur realized that Jakarta was trying to make his younger sibling happy by moving the capital. So this incident was greeted with great fanfare by both countries. Sabah and Sarawak will benefit greatly from the economy. But the challenge remains, however collaboration between Jakarta and Kuala Lumpur is important to win the new capital city of Indonesia. Hopefully it will soon become a synergy, win, and empower each other.

[1] R. Alika, ‘Malaysia Minta Ikut Garap Proyek Ibu Kota Negara di Kaltim’, Katadata.co.id (daring), 10 November 2021, <https://katadata.co.id/ameidyonasution/berita/618b9063a6ecf/malaysia-minta-ikut-garap-proyek-ibu-kota-negara-di-kaltim>, diakses 11 November 2021

[2] R. Alika, accessed 11 November 2021

[3] Farida, ‘Indonesia’s capital city relocation: A perspective of regional planning’, Jurnal Perspektif Pembiayaan dan Pembangunan Daerah, Vol. 9 №3, July — Augustus 2021, pp. 224–229

[4] H.M. Yahya, ‘Pemindahan Ibu Kota Negara Maju dan Sejahtera’, Jurnal Studi Agama dan Masyarakat, Vol. 14, No 01, Juni 2018, p. 23

[5] Y. Yanuar, “Malaysia: Pemindahan Ibu Kota ke Kalimantan Berdampak Positif”, Tempo (daring), <https://dunia.tempo.co/read/1509716/malaysia-pemindahan-ibu-kota-ri-ke-kalimantan-berdampak-positif>, accessed 10 January 2022

[6] H. Winovan, “Menhan Malaysia soal Ibu Kota Baru RI: Untung Datang ke Kami”, CNN (daring),

<https://www.cnnindonesia.com/internasional/20200127204402-112-469219/menhan-malaysia-soal-ibu-kota-baru-ri-untung-datang-ke-kami>, accessed 10 January 2022

[7] KumparanNEWS, “Pemindahan Ibu Kota RI ke Kalimantan Bakal Untungkan Sabah dan Sarawak”, KumparanNEWS (daring), <https://kumparan.com/kumparannews/pemindahan-ibu-kota-ri-ke-kalimantan-bakal-untungkan-sabah-dan-sarawak-1rk2LRylhiK/full>, accessed 10 January 2022

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Ariyanto Nugroho
Ariyanto Nugroho

Written by Ariyanto Nugroho

Conflict Resolution Activist | Prof | UMY | Fikriya Institute | CV. Jihan Political Resolution | PT. Global Inovasi Ventura | Dasein Homé | nugrohohoo@yahoo.com

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