Indonesia to move capital away from Jakarta — but where?
President Joko Widodo committed to the ‘important decision’ of relocating country’s seat of power, possibly out of Java island, cabinet official reveals
Indonesia is once again teasing plans to move the capital from congested Jakarta.
Bambang Brodjonegoro, the country’s urban planning minister, revived talk of the decades-long proposal after a cabinet meeting in which President Joko Widodo reportedly described the capital’s relocation as “an important decision”.
Without delving into specifics about the location, the minister said Widodo has “decided on … the option to relocate the capital.”
“In the future, would Jakarta be able to carry the double burden of being both the centre of government and its business centre?” Widodo asked in a statement prior to the meeting.
More: Esteemed judges to select finalists for 2019 PropertyGuru Indonesia Property Awards
Jakarta’s sustainability is eroding fast, given its unchecked population boom. The urban agglomeration around the city is already home to 30 million, making Jakarta one of the world’s biggest megalopolises.
The explosive demographic trends have put denizens at the mercy of urban problems, from expanding informal settlements to worsening traffic snarls.
Rumoured candidates for the new capital include Palangka Raya, in the Indonesian half of Borneo. Indonesia’s founding father Sukarno mulled transferring the seat of power from populous Java island to the capital of Central Kalimantan province; a succession of presidents have since floated the idea.
North Jakarta is sinking at an average of one to 15 centimetres a year, scientists say. At this rate, large parts of the metropolis could be under water by 2050.
Recommended
South Asia’s property markets edge back from the brink
After years of turmoil, South Asia’s real estate sectors are stirring back to life, buoyed by reform and renewed investor confidence
How property can be a force for good in Asia
Real estate is no longer seen only as an engine of profit but as a measure of how societies value people
What comes next for Southeast Asian real estate in 2026
From return-to-office realities to climate and tech disruptions, Southeast Asia’s residential markets are being reshaped by deeper forces
Foreign demand recalibrates in Southeast Asia housing markets
Even amid global headwinds, Southeast Asia’s property markets hold appeal for foreign buyers







