نوسانتارا
تاریخچه > Planning and funding

On 23 August 2019, Jokowi formally ratified the plan, as part of a strategy to reduce developmental inequality between Java and other islands in the Indonesian archipelago and to reduce Jakarta's burden as Indonesia's primary hub. Jokowi made an announcement about moving the capital city to Kalimantan during his state address in parliament seven days earlier.
The National Development Planning Ministry estimated the relocation cost to be Rp ۴۶۶ trillion (US$۳۲٫۷ billion) and that the government intended to cover 19% of the cost, the remainder coming mainly from public-private partnerships and direct investment by both state-owned enterprises and the private sector.
At the same time, US$۴۰ billion will be allocated to saving Jakarta from sinking in the next decade, which has also been widely reported as the fundamental underlying cause for the relocation of the capital.
In early September 2021, the bill for capital relocation was completed. On 29 September 2021, the Jokowi administration submitted an omnibus bill for the capital relocation to the House of Representatives (the lower house of Indonesian legislature). Amongst many items prescribed in the bill, it contained the plan for the formation of a Capital City Authority (Otorita Ibu Kota Negara), a special agency responsible for the new capital and answering to the President. The new agency was granted ministry-like qualities in that the office holder would be appointed by the President, but with special governing capabilities akin to a provincial governor. It will also regulate how the Capital Authority will manage its funding, taxation, retribution, and assets.
Because the plan was submitted in the middle of Jokowi's second term as president, the People's Consultative Assembly (MPR) suggested a constitutional amendment to re-establish MPR's ability to enact Principals of State Policies (Pokok–Pokok Haluan Negara, PPHN), similar to the New Order's MPR's State Policies Outline (Garis Besar Haluan Negara, GBHN). This was to provide security and sustainability to the project and ensure its continuation after Jokowi was no longer in the presidency. Based on the results of the KedaiKOPI Survey Institute survey in August 2019, 95.7% of respondents from Jakarta expressed their rejection of the plan to move the capital city to East Kalimantan. On 17 January 2022, during a Special Committee Meeting, Minister of National Development Planning Suharso Monoarfa said the new nation's capital would be named Nusantara.
It was hoped that development of Nusantara would learn lessons from a similar relocation, when Brazil relocated its capital from Rio de Janeiro to Brasília in 1960.
On 3 June 2024 it was announced that Bambang Susantono, head of the Nusantara Capital City Authority, along with his deputy, Dhony Rahajoe, had resigned. Yusuf Wibisono, Director of the Institute for Demographic and Poverty Studies (Ideas), speculated that this might have been sparked by president-elect Prabowo being less enthusiastic about the project than Jokowi was, citing Prabowo's statements at that time in which he said the project would still continue, but would no longer be a priority. But, on 12 August 2024, Prabowo changed his mind and will prioritize the project.