There are good reasons why Indonesia wants to move its capital city away from Jakarta, but any move faces significant obstacles. The main reason for wanting to move is that Jakarta is sinking. According to some estimates, 95% of north Jakarta will be underwater in 30 years time, impacting nearly 2m people. Other reasons why President Joko Widodo has proposed the move is to alleviate congestion and overcrowding. Relocating the capital would also boost development in some of the country’s poorest islands, a key government priority.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services