Will Indonesia’s new $33 billion capital be the end of Jakarta?

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Will Indonesia's new $33 billion capital be the end of Jakarta?
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Will Indonesia’s new $33 billion capital be the end of Jakarta?

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Will Indonesia's new $33 billion capital be the end of Jakarta?
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What makes people choose a new city as home? Ridwan Kamil returns to share how Nusantara aims to evolve from master plan to living city, all while balancing bold aspirations with the practical steps needed to build a thriving capital.

As Nusantara’s Development Curator, Ridwan brings decades of experience in reshaping urbanscapes in Indonesia. The architect-turned-politician has consistently proven how architectural thinking can drive positive change in public service.

A champion of liveable cities, Ridwan outlines Nusantara’s pragmatic path forward. He shares how climate-responsive design, environmental integration, and economic incentives will deliver Indonesia’s city of tomorrow.

Episode outline

00:01:15 Building a forest city
00:02:45 “Overall, it aims to be a net-zero carbon emission city.”
00:04:35 “I’m very confident that the whole of Nusantara, if executed well […] can be a model [for all] new development in Indonesia.”
00:11:52 “If you go to Nusantara, the promise is you have a better life — so it means you have a better income.”
00:12:55 “You get lower corporate tax if you build something in Nusantara compared if you build something in Jakarta.”
00:16:48 Indigenous and environmental impact
00:17:03 “Ninety-five percent of the land is […] plantations of this eucalyptus tree.”
00:18:23 “[…] there is no way the President or the country would harm its own citizens […]”
00:18:53 Funding Nusantara’s vision
00:19:55 “[…] domestic investors already placed 4 billion US dollars.”

Summary

Nusantara, also known as Ibu Kota Nusantara, or IKN, is Indonesia’s ambitious new capital city under construction in East Kalimantan. Hopes abound that it will set high benchmarks for sustainable urban development. But how will these aspirations translate into reality?

At the heart of the city’s environmental strategy lies its identity as a ‘forest city’, where architecture takes a deliberate back seat to vegetation. Buildings must also meet stringent green building codes.

The Vice President’s Palace (“Huma Betang Umai”) designed by SHAU with APTA and Cilaki Studio, exemplifies this approach. It responds directly to site conditions and climate patterns.

The design of the Vice President’s Palace was led by SHAU with a focus on sustainability, integrating site-specific climate and microclimate research.
Courtesy of SHAU

The project of Nusantara faces challenges that extend far beyond city limits. While nearby cities are experiencing economic benefits from the development, questions remain about supply chains and their environmental impact.

The ripple effects of Nusantara’s development are being felt in nearby cities, with Balikpapan seeing rising land prices and increased demand for hotels and housing.
Courtesy of URBAN+ and Ministry of Public Work and Housing of Indonesia

Perhaps the most pressing challenge is attracting people to this new city. The strategy includes incentives like reduced taxes, but creating a vibrant urban community requires more than economic benefits.

The immediate focus is establishing government functions and tourism, with business activities expected to follow. The long-term goal is a full-scale city where government, business, and tourism coexist.

The Kemenko Buildings were designed by URBAN+ to emphasise public spaces and ground-floor activities, with elevated walkways connecting building clusters.
Courtesy of URBAN+ and Ministry of Public Work and Housing of Indonesia

Critics worry that building Nusantara might divert resources from addressing Jakarta’s urgent problems, including its sinking ground and severe congestion. However, the plan to relocate Indonesia’s capital stretches back to colonial times.

Jakarta will remain Indonesia’s economic centre, with only government functions moving to Nusantara. In fact, the relocation might offer Jakarta new opportunities to reinvent itself as a global city, Ridwan suggests.

Jakarta will retain its role as Indonesia’s business capital, while government operations move to new buildings in Nusantara, such as the Vice President’s Palace.
Courtesy of SHAU

Can Nusantara become both liveable and lovable? The former might be achievable through careful planning and design. The latter requires time, allowing culture and community to evolve organically.

As construction continues and the first residents prepare to move in, the world watches to see if this ambitious experiment in city-building can deliver on its promises.

Gallery

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Episode Notes

Keep reading if you want to deep dive into this interview’s content and get more out of it. You can also find out more about this episode’s guest/s and sponsor/s, and the team that put it all together.

This episode is brought to you by:

The Holcim Foundation for Sustainable Construction

The Holcim Foundation helps drive systemic change towards a more sustainable built environment. It was founded in 2003 to define and promote the key principles of sustainability for the construction sector and is committed to accelerating the sector’s transformation so that people and the planet can thrive.

The Foundation has investigated various aspects of sustainable construction via a series of roundtables and conferences with international experts. It has also recognised excellent contributions to this field with the Holcim Foundation Awards which are considered the world’s most significant competition for sustainable design.

Committed to a holistic approach that recognises the equal importance and interdependence of four key goals, the Foundation combines the collective knowledge, ideas, and solutions of our global community of experts with a recognised platform of international competitions to democratise thought leadership for the entire sector.

W  |  holcimfoundation.org

Facebook  |  Twitter  |  LinkedIn  |  YouTube  |  Instagram

This episode is brought to you by:

The Holcim Foundation for Sustainable Construction

The Holcim Foundation helps drive systemic change towards a more sustainable built environment. It was founded in 2003 to define and promote the key principles of sustainability for the construction sector and is committed to accelerating the sector’s transformation so that people and the planet can thrive.

The Foundation has investigated various aspects of sustainable construction via a series of roundtables and conferences with international experts. It has also recognised excellent contributions to this field with the Holcim Foundation Awards which are considered the world’s most significant competition for sustainable design.

Committed to a holistic approach that recognises the equal importance and interdependence of four key goals, the Foundation combines the collective knowledge, ideas, and solutions of our global community of experts with a recognised platform of international competitions to democratise thought leadership for the entire sector.

W  |  holcimfoundation.org

Facebook  |  Twitter  |  LinkedIn  |  YouTube  |  Instagram

As mentioned in this episode

If you heard it in this episode, we likely have a link for it right here. Click on any topics, people, buildings, places, products and/or technologies listed below to learn more about each of them.

00:02:38 “…specific acts of rewilding. It will…”
What is rewilding?”  |  Rewilding Europe
00:28:36 “…coming from CSR money…”
What Is CSR? Corporate Social Responsibility Explained”  |  Investopedia
00:00:44 “…Ridwan Kamil, one of the best-known…”
Mochamad Ridwan Kamil”  |  Bloomberg
00:03:10 “…the architects, SHAU, previously on …”
SHAU”  |  SHAU
00:03:15 “…you know… Florian… and also…”
Florian Heinzelamann (Dr)”  |  National University of Singapore
00:03:16 “…and also Daliana, for example…”
Daliana Suryawinata”  |  Holcim Foundation
00:21:03 “…President Jokowi lobbied many domestic…”
Joko Widodo”  |  Britannica
00:27:29 “…Ibu Risma of Surabaya, now…”
Ibu Tri Rismaharini”  |  Australia Indonesia Centre
00:27:35 “…was another mayor in Makassar…”
Visit from the Mayor of Makassar”  |  Monash University
00:00:40 “…Nusantara, the new capital of Indonesia…”
Nusantara” (East Kalimantan, Indonesia)  |  Britannica
00:00:41 “…new capital of Indonesia, is well underway…”
Indonesia”  |  Britannica
00:01:50 “…the next Governor of Jakarta…”
Jakarta” (West Java, Indonesia)  |  Britannica
00:02:10 “…under construction since 2022 in East Kalimantan…”
East Kalimantan” (Indonesia)  |  Britannica
00:02:19 “…purpose-built capitals like Brasilia…”
Brasília” (Brazil)  |  Britannica
00:02:20 “…capitals like Brasilia or Canberra…”
“Canberra” (Australian Capital Territory, Australia)  |  Britannica
00:03:04 “…the design of the Vice President’s Palace by SHAU Architects…”
Vice President’s Palace Officially Under Construction in Nusantara” (Nusantara, East Kalimantan, Indonesia)  |  Nusantara
00:03:09 “…based in Singapore — you know.…”
Singapore”  |  Britannica
00:08:17 “…Balikpapan is so busy right now…”
Balikpapan” (East Kalimantan, Indonesia)  |  Britannica
00:08:35 “…Samarinda, another city — we call it…”
Samarinda” (East Kalimantan, Indonesia)  |  Britannica
00:08:56 “…the nearby island like Sulawesi where…”
Sulawesi” (Indonesia)  |  Wikipedia
00:09:05 “…you cannot ship everything from Java Island…”
Java” (Indonesia)  |  Britannica

There are no design features discussed in this episode.

00:02:43 “…the use of electric vehicles…”
How Do All-Electric Cars Work?”  |  US Department of Energy
00:10:06 “…use the economy of carbon trading…”
Carbon Trade: Definition, Purpose, and How Carbon Trading Works”  |  Investopedia

Host
Nirmal Kishnani

Producer
Maxime Flores

Editor-at-large
Narelle Yabuka

Senior communications executive
Sana Gupta

Senior editor
Tyler Yeo

Art director (video)
Alexander Melck  |  Phlogiston

Sound technician and editor
Kelvin Brown  |  Phlogiston

Video editors
Guellor Muguruka  |  Phlogiston

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How can we design interiors that not only minimise environmental harm, but also actively promote human well-being? Some architects and designers are sparking fresh ideas about how our built spaces can perform better.
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What makes people choose a new city as home? Ridwan Kamil returns to share how Nusantara aims to evolve from master plan to living city, all while balancing bold aspirations with the practical steps needed to build a thriving capital.
How can we design interiors that not only minimise environmental harm, but also actively promote human well-being? Some architects and designers are sparking fresh ideas about how our built spaces can perform better.

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