Why Indonesia Is Shifting Its Capital From Jakarta

Jakarta is soon to become an ex-capital city. Indonesia is planning to move its administrative headquarters from its richest island of Java to the forest island of Borneo. President Joko Widodo is betting that a new capital for the Southeast Asian nation will better spread the wealth among its 267 million citizens -- and ease the pressure on overcrowded Jakarta, Indonesia’s commercial and political hub for centuries.

As well as bursting at its seams, the city is sinking. Two-fifths of Jakarta lies below sea level and parts are dropping at a rate of 20 centimeters (8 inches) a year. That’s mostly down to the constant drawing up of well water from its swampy foundations. The concrete and asphalt carpet that accompanied urban sprawl prevents heavy rains from replenishing the aquifer. Instead, neighborhoods frequently flood; at least 60 people died in January. Stultifying traffic congestion and polluted air are a daily reality for Jakarta’s 10 million inhabitants. The gridlock costs an estimated 100 trillion rupiah ($7 billion) a year in lost productivity for the greater Jakarta area, known as Jabodetabek, encompassing 30 million people.