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This paper discusses the political policy of President Joko Widodo's government to move Indonesia's national capital from Jakarta to East Kalimantan. This controversial decision has sparked debate among various stakeholders, both domestically and internationally. The official justification for relocating the capital is Jakarta's overpopulation, severe traffic congestion, and flooding problems, along with the goal of fostering economic development and income equality outside Java. However, these reasons are overshadowed by significant political and business interests, particularly those of foreign investors, due to East Kalimantan's rich natural resources. These underlying interests drive President Joko Widodo's determination to proceed with the capital relocation amidst domestic economic and political challenges. The project exacerbates socio- economic inequality and national debt, benefiting a few oligarchs at the expense of many. Additionally, the relocation project has resulted in massive environmental damage, displacing tens of thousands of hectares and disrupting the lives of indigenous communities, such as the Balik tribe. This project erodes local wisdom and social systems that have existed for generations. The capital relocation is heavily influenced by Chinese business interests, facilitated by Government Regulation No. 12 of 2023, which provides a legal framework for investor control for 190 years. This regulation is seen as more exploitative than colonial practices of the past. Internationally, the project has drawn criticism for its environmental destruction amid global concerns about climate change. Ultimately, the New Capital City Relocation Mega Project raises critical questions about who truly benefits and who suffers from this massive undertaking.
Muhammad Uhaib As'ad (Fri,) studied this question.