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Indonesia Passes Law on New Capital, Paving Way for Relocation From Jakarta

  • Capital named Nusantara to have special administrative status
  • The law gives the $34 billion project legal basis to continue
The MPR/DPR Building, the complex of Indonesia's national parliament, in Jakarta.

The MPR/DPR Building, the complex of Indonesia's national parliament, in Jakarta.

Photographer: Dimas Ardian/Bloomberg
Updated on

Indonesia’s parliament passed the law governing its new capital on Tuesday, paving the way for the world’s largest archipelago to relocate its seat of government to Borneo island, from Java. 

The new capital will cover a main area of 56,180 hectares in East Kalimantan province, according to the new law passed by parliament on Tuesday. It also states that the capital has a special administrative status that will allow the president, with approval from parliament, to appoint its head, scrapping the need for an election often marred by fierce political battles.