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Hi All,

The impending capital relocation of Indonesia from Jakarta to the newly planned city in East Kalimantan presents an array of potential outcomes.

The Indonesian government’s decision to relocate its capital from Jakarta, a city suffering from severe overpopulation and environmental challenges, to a yet-to-be-built city in East Kalimantan has sparked considerable discussion.

Despite the capital’s relocation, And despite being named as Daerah Khusus Jakarta (DKJ) Jakarta, as a commercial and economic hub, will likely continue to hold significant importance nationally and regionally. The city’s outlook entails potential for further development, focusing on improving infrastructure, addressing environmental challenges, and reducing social inequality. Freed from the burdens of administrative functions, Jakarta could focus on becoming a global city, concentrating on commerce, finance, and cultural activities. Please see my article on Jakarta.

Whilst New capital cities could learn comparatively to other countries, Australia’s capital Canberra’s planned and developed in the early 20th century, has succeeded in balancing development and maintaining a high quality of life, demonstrating a well-executed capital relocation.

Some other countries facing challenges of overpopulation, congestion, and regional disparities had also done relocation :

  1. Brazil:

In the 1960s, Brazil relocated its capital from Rio de Janeiro to Brasília, a planned city built specifically to serve as the new capital. The move aimed to promote development in the interior of the country. The successful transition brought several benefits:

  • Balanced Regional Development: The relocation of the capital contributed to regional development by stimulating economic growth and infrastructure development in Brasília and its surrounding regions. This helped reduce the concentration of resources and power in Rio de Janeiro.
  • Administrative Efficiency: Centralizing government functions in Brasília improved administrative efficiency by fostering better coordination among government agencies. It also facilitated the development of a modern, purpose-built administrative infrastructure.
  • Symbolic Significance: The new capital symbolized Brazil’s commitment to progress, modernity, and national unity. It became an iconic representation of the country’s aspirations and contributed to its global image.
  1. Malaysia:

In 1999, Malaysia decided to split its administrative functions between Kuala Lumpur and Putrajaya. Kuala Lumpur remained the economic and financial hub, while Putrajaya became the administrative capital. This decision brought several advantages:

  • Decentralization of Power: The separation of administrative functions allowed for the decentralization of power, reducing the burden on Kuala Lumpur and fostering development in Putrajaya. It also facilitated regional development in other parts of the country.
  • Improved Urban Planning: Putrajaya was designed as a modern, well-planned city with a focus on green spaces and efficient infrastructure. This approach helped alleviate congestion and provided a conducive environment for government activities.
  • Economic Growth: The division of administrative functions created new economic opportunities in Putrajaya, leading to the growth of various sectors such as real estate, hospitality, and services. This contributed to the overall economic development of the country.
  1. South Africa:

After the end of apartheid, South Africa decided to split its administrative functions across three cities: Pretoria (executive capital), Cape Town (legislative capital), and Bloemfontein (judicial capital). This decision brought several benefits:

  • Balanced Representation: The division of administrative functions across different cities ensured a more equitable distribution of power and representation among the country’s diverse regions. It helped address historical imbalances and fostered inclusivity.
  • Preservation of Historical Significance: By maintaining Bloemfontein as the judicial capital, South Africa respected and preserved the historical significance associated with the city, which played a crucial role in the country’s legal development.
  • Economic Opportunities: The distribution of administrative functions across multiple cities created economic opportunities in each location. This resulted in the development of infrastructure, tourism, and related industries, contributing to regional economic growth.

Countries that moved their Capital States

  • Myanmar – 2005
  • Kazakhstan – 1997
  • Tanzania – 1996
  • Nigeria – 1991
  • Ivory Coast – 1983
  • Brazil – 1960
  • Pakistan – 1959
  • Russia – 1918

In short, the capital relocation in Indonesia is a complex, multi-faceted issue with potential for both significant benefits and challenges. As Jakarta navigates its future sans capital status, lessons from other countries’ experiences with capital relocation provide valuable insights. The success of this transition largely depends on careful planning, sustainable practices, and inclusive policies that consider the socio-economic and environmental ramifications of such a significant change.

  • from many sources

Salam Sehat Semangat Sukses

Bambang Purnomo , SS-BA, CSCA, CAVM Solution Consultant

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POWER ACTION © 2024. All rights reserved.