Nusantara as the new capital of Indonesia (the transfer of the capital as a form of solving the problems of uneven urbanization)

Kyrchanoff Maksym Waler'evich ORCID: 0000-0003-3819-3103 Doctor of History Voronezh State University, Associate Professor of the Department of Regional Studies and Economics of Foreign Countries, Faculty of International Relations; Associate Professor of the Department of History of Foreign Countries and Oriental Studies, Faculty of History; ResearcherID: B-8694-2017; Scopus Author ID: 57193934324 394077, Russia, Voronezh region, Voronezh, Pushkinskaya str., 16, office 236 maksymkyrchanoff@gmail.com Other publications by this author

IntroductionAmong the postcolonial societies of Southeast Asia, Indonesia is one of the most intensively and dynamically growing economies.

During the 1980s – 1990s, at the late stage of the existence of the "new order" political regime, the country was undergoing modernization processes that set qualitatively new tasks for the national economy. Like other Southeast Asian countries, Indonesia has faced increasing migration, which has led to changes in the demographic structure of the population. Migration processes, responding to the demands of a dynamically developing economy, stimulated the outflow of population from agricultural areas, which stimulated not only modernization, but also urbanization of modern Indonesian society.

Indonesia, with a population of 270 million people, is not only the most populous Muslim country, but also represents one of the most urbanized societies in Southeast Asia. According to national statistics, there are 20 cities with a population of more than 600 thousand people in Indonesia. The largest city is Jakarta, whose population in 2021 was, according to the Ministry of Internal Affairs, 11,189,650 people ^[24]. Based on Presidential Decree No. 2 of 1961 and Law No. 10 of 1964, Jakarta is the capital of Indonesia.

Urbanization processes in Indonesia are uneven. A separate group of cities consists of megacities with a population of more than 2 million people. It includes the largest cities of the country, including Medan, Bandung and Surabaya with populations of 2,525,677, 2,527,854 and 2,970,952 people, respectively ^[24]. Another group of cities is represented by administrative centers with a population of more than one million people. There are six such cities in modern Indonesia. The least populated of them is Pekanbaru (1,074,989), and the largest is Semarang (1,729,428) ^[25]. In 2020, the Central Statistical Agency of Indonesia recognized that 56.7% of the population lives in urban areas, predicting that by 2025 it will increase to 66.6% ^[49]. Modern Indonesian researchers recognize such a situation of urban development as imperfect. Therefore, the expert community and the media regularly point out numerous imbalances in the development of cities and related demographic, social and political problems.

In recent years, Indonesian intellectuals and experts have been actively participating in discussions related to the search for the most optimal mode of urban development in Indonesia. One of the solutions to the problems associated with uneven levels of urbanization, according to reputable Indonesian politicians and experts, is the transfer of the capital from Jakarta to a less urbanized region.

Purpose and objectives of the articleTherefore, the focus of the author's attention in the presented article will be the problems of urbanization of Indonesia in the context of discussions regarding the transfer of the capital.

The purpose of the article is to analyze the project of changing the status of Jakarta and the construction of a new political and economic center, which is planned to be given a metropolitan status. The objectives of the article include the consideration of the main features and contradictions of the urbanization of Indonesia, the study of the discussions of Indonesian experts on the urbanization process in the country, the analysis of the points of view expressed by analysts regarding the prospects of urban development in modern Indonesia.

HistoriographyThe problems of the history and current state of Indonesian urbanization have received limited study in the scientific literature ^[48], and a significant part of such studies at the present stage are of almost exclusively historiographical interest ^[41].

The issues of urbanization processes in Russian and foreign historiography are presented extremely unevenly. Considerable attention is paid to the problems of Indonesian cities ^[40] in historical and modern perspective in the American and Australian scientific literature ^[8]. Western researchers analyze urbanization in the context of social, economic, cultural and political modernization ^[10]. A significant part of the work is of a comparative nature ^[9], which integrates the Indonesian experience into regional and international comparative studies of urbanization. Studies focused on the study of cities are integrated into broader studies ^[7], methodologically based on modernist and constructivist theories in modern social sciences ^[26]. In Soviet and Russian Indonesian studies, urbanization has not become a topic of independent research ^[1]. Therefore, its problems are analyzed in the context of the political and social history of the country ^[3], as well as in the framework of the study of the Indonesian economy ^[2]. The uneven scientific literature on the urbanization of Indonesia, the presence of a significant number of problems and contradictions related to the development of Indonesian cities, discussions among experts regarding the transfer of the capital – all these factors not only indicate the importance of studying the urbanization process in the most populous Muslim country, but also give it special relevance.

Jakarta and its place in the urbanization of IndonesiaJakarta, founded in 1527, is the largest urbanized region in modern Indonesia, which includes 664.01 km2.

In the administrative structure of the country, Jakarta is a Special Metropolitan District (Daerah Khusus Ibukota Jakarta or DKI Jakarta), equal in status to the province. Therefore, unlike other cities, Jakarta is headed not by the mayor, but by the governor. The history of Jakarta in the 20th – 21st centuries is characterized by trends of rapid population growth.

If in 1930 the population of the city was 533 thousand people, then by 1960 – 2.9 million, by 1970 – 4.6 million, by 1980 – 6. 503.449, by 1990 – 8.259.639 ^[45], by 2007 – 7.552.444, by 2010 – 9.607.787, by 2016 – 10.6 million, by 2022 – 11. 100. 929 ^[38]. As for internal migration ^[22], the influx of population to Jakarta is usually higher than the outflow ^[6]. For example, in the first half of the 2000s, the inflow was respectively 2 874 801 (2002), 3 021 214 (2003) and 2,404,168 (2004) while the source was 2 643 273 (2002), 2 816 384 (2003) and 2,213,812 (2004) ^[38]. As for the outflow of population from Jakarta, its scale does not indicate the deurbanization of Indonesia, since most migrants were sent not to agricultural regions, but to the cities closest to Jakarta, which are actually part of its agglomeration.

Susianah Affandi, commenting on this feature of the Indonesian model of urbanization processes, believes that "the decline in the level of urbanization of Jakarta as a Special Metropolitan Area is undeniable as a result of the widespread economic development of small towns around Jakarta. The construction of factories and the growth of the industrial sector, concentrated in areas outside the administrative historical Jakarta, contributes to the urbanization of these areas. Thus, the decrease in the level of urbanization in Jakarta is inversely proportional to the increase in the level of urbanization in areas such as Bekasi, Depok and Tangerang" ^[4].

Commenting on such a redistribution of the population between Jakarta as the largest city in Indonesia and agricultural regions, Van Ulfa Nur Zuhra states that "the village only temporarily accepted those who left the city because of the coronavirus. The village, whose resilience is no longer as strong as it used to be, becomes a savior again and again when the world is hit by a crisis, but the resources of the agrarian area have also been undermined. The best people moved and concentrated in the cities," figuratively emphasizing that "the stomach of the village shrank, and the stomach of the city grew" ^[49].

Analyzing the population growth of Jakarta, it should also be taken into account that the majority of the population of Indonesia professes Islam. According to Indonesian experts, Jakarta actualizes the signs of a "spatially imperfect concentration of the population" ^[28], since it actually institutionalizes the disproportions of regional development. Urbanization is stimulated by ideological factors, since the stereotype that "rural residents moving to cities are successful people" is stable among Muslims in Indonesia ^[43]. In addition, the cyclical processes of urbanization during the year are associated with religious practices, since the increase in the influx of population to cities occurs after Eid al-Adha ^[16].

The mobility of the population in Indonesia at the domestic level, the growth of the urban population, primarily in Jakarta, actualized regional contradictions and imbalances ^[21] between the capital and other major cities, despite the presence of common problems ^[11]. These trends of urbanization in modern Indonesian scientific literature, as a rule, are evaluated negatively due to the fact that they lead to the growth of unsolvable social and economic problems ^[23]. Nadia Faradiba, an Indonesian journalist, categorically emphasizes that "urbanization does not benefit the country" ^[16]. Such changes in the population of Indonesia's largest city reflect the uneven urbanization processes. Jakarta proper and adjacent territories, including Tangerang, Tangerang-Selatan, Bogor, Bekasi and Karawang, form The Big Durian urban agglomeration with a total population, according to 2019 data, of 34 365 thousand people, which turns it into the largest metropolis in Southeast Asia.

In modern Indonesian urbanism, such a large-scale expansion and transformation of Jakarta, as a rule, is associated not with natural historical and social reasons ^[45], but with an ill-conceived spatial planning policy or even its complete absence ^[39]. In such a situation, the transfer of the capital begins to be perceived as a way to solve the problems that have arisen as a result of urbanization.

Problems of moving the capital in the socio-political discourse of IndonesiaThe ideas of moving the capital in Indonesian society with the active participation of the media are updated regularly.

Discussions about the relocation of the capital and a possible change in policy regarding urbanization are also stimulated by government agencies. For example, the Central Statistical Office (Badan Pusat Statistik, BPS) Back in 2015, it predicted the growth of the country's urban population to 67% by 2035. The head of the Agency for the Development of Regional Infrastructure (Badan Pengembangan Infrastruktur Wilayah, BPIW) Rido Matari Ichwan pointed out that the population growth of cities, primarily Jakarta, multiplies social and economic problems, thereby recognizing that the National the policy and strategy of urban development (Kebijakan dan Strategi Pengembangan Kawasan Perkotaan Nasional) is actually not effective ^[37].

By 2020, discussions about the relocation of the capital were stimulated by the growing awareness of the problems of Jakarta, which resulted from the intensive urbanization of the region and its transformation into an agglomeration. As systemic problems, Indonesian experts recognized the spatial limitations of the capital, which does not allow the construction of new offices of commercial companies and government agencies; the growth of social problems related to unemployment; ill-conceived planning policy leading to the emergence of slums; deterioration of the social situation leading to an increase in infectious diseases; disproportionate outflow of population from agricultural areas to cities, first of all, to the capital ^[31].

Abdul Kodir (York University), commenting on the transfer of the capital, stressed that modern Jakarta "does not meet the adequate capabilities of urban planning and the environment" ^[27]. This discrepancy is partially stimulated by the threats of flooding, which is associated with the geographical location of the city ^[42]. In such a situation, the political elites of Indonesia, "seeing a lot of negative consequences of urbanization, are trying to reduce the pace of urbanization" ^[32], which is connected with the very idea of moving the capital. However, supporters of this event ignore the fact that the deprivation of Jakarta's metropolitan status will not change its fundamental importance in the Indonesian economy, which probably will not reduce the growth of the urban population.

The need to move the capital is justified by the fact that by 2045, according to experts, the country will become one of the largest economies; the creation of a new capital will include other regions of the country in the processes of economic growth; the objective conditions of Jakarta require its "unloading" and exemption from the capital's powers ^[33]. American expert and urbanist David Sussman believes that the efforts of the elites of Indonesia to move the capital actualize their political ambitions to a greater extent, rather than the country's real readiness for such changes, which automatically turns both real Jakarta and the proposed Nusantara into "one-time use cities" ^[44], since the transfer of the capital will not solve economic and social problems. the social problems associated with uneven levels of urbanization have only exacerbated them to a greater extent.

The main incentive that pushes the authorities to move the capital was demographic imbalances in the distribution of the population of Indonesia. The deprivation of Jakarta's status is stimulated by the fact that 56.56% of the total population of Indonesia lives on the island of Java, and the region's contribution to national GDP is 58.49%, which is poorly combined with the social problems that take place, including the crisis of water availability for the population, on the one hand, and the constant risks of flooding, on the other ^[34].

Supporters of the transfer of the capital are pointed out in this regard to the existing imbalances. The eastern part of Indonesia, which includes Kalimantan, Sulawesi, Maluku and Papua, occupies 64% of the total territory of the country, producing only 16.8% of GDP ^[14]. Such arguments are not accepted by all Indonesian experts. The main argument of the opponents is that Indonesia will be forced to spend 466 trillion rupees on activities related to the construction of a new city and the relocation of government authorities ^[13]. Masito Nur Rohma (Indonesian Islamic University, Yogyakarta) believes that "the relocation of the capital does not comply with the principles of justice, participation and gender equality, especially women, which are important foundations of sustainable development. The construction of a new capital is actually unfair to the environment and future generations, as it is not accompanied by public approval" ^[29].

The State program for the transfer of the capital of IndonesiaOn August 16, 2019, President of the Republic of Indonesia Joko Widodo made an official speech on the relocation of the capital of Indonesia ^[19].

On January 18, 2022, the Law on the State Capital was adopted ^[47], according to which Jakarta was to lose its capital status by transferring state institutions to a new capital – Nusantara, which is planned to be built on the territory of East Kalimantan.

As part of the transfer of the capital during 2020 – 2024, it is planned to create key infrastructure, transfer part of government institutions, create infrastructure for 500 thousand residents, move the President and celebrate the Independence Day of the Republic of Indonesia on August 17, 2024. From 2025 to 2035, it is planned to implement activities related to the development phase of Nusantara, which provides for the completion of the transfer of government institutions and attracting investments to implement the functions of the city not only as a political, but also as an economic capital. During the third stage, from 2035 to 2045, it is planned to develop urban infrastructure, utility networks, create conditions for attracting innovations, turn Nusantara into a "world leader in competitiveness" and one of the ten "most livable cities in the world", which provides for "achieving zero carbon emissions and 100% utilization renewable energy sources" ^[20].

It is assumed that the population of Nusantara will not exceed one million people, of which about 200 thousand will be civil servants, and 800 thousand will be members of their families ^[35]. One of the promoters and popularizers of the idea of moving the capital is the Ministry of Planning and National Development, whose head Suharso Monoarfa emphasizes that the emergence of a new center of the country in Kalimantan "is based on several considerations and regional advantages associated with the birth of a new economic center of gravity of the archipelago" ^[30]. Joko Widodo on March 26, 2022, commenting on the transfer of the capital, stressed that the goal is to eliminate the imbalances in development associated with an uneven level of urbanization: "we want Indonesia to be focused not on Java, but on Indonesia. The transfer of the state capital is not a project of a new lighthouse… Kalimantan Island is the pearl of Indonesia, located on the emerald equator. The big transformation that we are implementing is not just the transfer of the capital, we must become a strong and independent economy" ^[17].

Opinions regarding the transfer of the capital among Indonesian intellectuals and politicians were divided. If some experts suggest perceiving the transfer of the capital as "a form of equal distribution of growth towards the East, although previously growth was too javacentric" ^[5], others, on the contrary, insist that a rapid economic effect should not be expected. The head of the Hajj Financial Management Agency (Badan Pengelola Keuangan Haji, BPKH), Anghito Abimanyu, believes that the transfer of the capital does not entail the automatic relocation of the economic center, since it is limited only to the transfer of public administration functions. If the elites attempt to give Nusantara the status of an economic capital, then the city, according to some analysts, "will become dirty, that is, it will become the same as Jakarta. The question is, do you want this to happen in 30 years or will we try to make this city modern" ^[18].

The main administrative participants in the transfer of the capital of IndonesiaFor the transfer of the capital in Indonesia, the Capital Administration of the Archipelago (Otorita Ibu Kota Nusantara) was created.

The Administration is an institution of State power at the ministry level, whose tasks include preparing for the transfer of authorities from Jakarta to the new capital, as well as the development of Nusantara as a proposed new capital. The Administration is headed by a Head appointed by the President ^[36].

The Head of the Administration is a member of the Government, being an official at the level of the Minister. On March 10, 2022, Indonesian President Joko Widodo appointed Bambang Susantono as the head of the Metropolitan Administration, and Doni Rahajo as his deputy, who, reporting directly to the President, are called upon to solve the problem and coordinate measures for the development of Nusantara, despite the fact that the city has not actually been built yet. Bambang Susantono, commenting on the transfer of the capital, emphasizes that "the construction of a city is not only the construction of its physical body, but also social cohesion, interaction between its inhabitants ... this is how the city becomes livable ... therefore, we ask for support from all segments of society so that the capital of the Archipelago becomes an inclusive, green and sustainable city built for all people, that is, it became a city for everyone" ^[15].

As part of the implementation of such a model of development of Nusantara, it is assumed that the Government zone will provide not only the presence of administrative buildings, but also green spaces. According to the project, Nusantara will be a city of public transport, which 80% of residents will be able to use. Popularizing the idea of moving the capital, the Indonesian authorities are actively promoting the thesis that in the new capital, 100% of residents will have access to recreational spaces, social and medical services and authorities within 10 minutes from their place of residence. In addition, taking into account the negative experience of Jakarta, the Nusantara construction project provides for compliance with environmental standards in the construction of administrative and residential buildings, as well as the creation of a completely inclusive environment. As part of the transfer of the capital, it is also planned to build a new international airport, which will be transportably accessible within 50 minutes for residents of Nusantara traveling from any area of the city ^[12].    

It is assumed that from 2023, all issues related to Nusantara will be transferred to the jurisdiction of the Metropolitan Administration, although separate ministries are currently dealing with them. The powers of the Capital Administration of the Archipelago, starting from 2022, include attracting investments for the development of Nusantara, creating conditions of maximum favorability for economic actors at the regional level, presenting preferences to investors in the construction of a new city, coordinating the development of the capital and satellite cities, managing city finances, determining tax policy, resolving land issues in connection with with the construction of state facilities and residential buildings and the solution of environmental issues. The construction of Nusantara and its development is based on two documents approved by the President – the General Plan of the capital of the Archipelago (Rencana Induk Ibu Kota Nusantara) and the Strategic Plan of the National Priority Zone of the capital of the archipelago (Rencana Strategis Kawasan Strategis Nasional Ibu Kota Nusantara).

Along with the Metropolitan Administration, the Temporary Support Group for the Preparation, Development and Transfer of the National Capital (Tim Transisi Pendukung persiapan, Pembangunan, dan Pemindahan Ibu Kota Negara / Tim Transisi P3 IKN) deals with the transfer of the capital. Structurally, the Temporary Group includes several sectors created to coordinate the solution of economic and financial issues related to the transfer of the capital. The Planning Coordination Sector cooperates with the Ministry of Public Works and Public Housing, the Ministry of National Development Planning / Agency for National Development Planning and the Ministry of Agrarian and Territorial Planning / National Land Agency, solving general issues of relocation of ministries and development of the new capital. The Development Control Coordination Sector performs control functions by monitoring the transfer of the capital. The sector of Infrastructure and Coordination of Land Resources is designed to solve land use issues for the construction and development of the infrastructure of the new capital. The Sector of Coordination of the Environment, Forestry and Climate Change is called upon to conduct environmental policy in the capital under construction. The Investment Coordination Sector is designed to attract potential investors for the construction of facilities in Nusantara and the development of related and necessary infrastructure. The Coordination of Technological Development and Innovation Sector is responsible for the development of the digital component in the management of the new capital. The Sector of Social Coordination and Community Empowerment interacts with the Ministry of Internal Affairs of Indonesia and is designed to coordinate the implementation of domestic policy.  The Financing Coordination Sector controls the use of budget funds allocated both for the construction of Nusantara and for the relocation of authorities. 

ConclusionsSumming up the article, a number of factors related to both the development of urbanization and the possible relocation of the capital of Indonesia should be taken into account.

Urbanization processes proceeded unevenly, which actually institutionalized the disproportions in the levels of development of both cities and individual regions, which created numerous social, economic and demographic problems. Modern elites, both at the national and regional levels, are unable to develop an effective mechanism for the development of Indonesian cities and solving the problems of the most urbanized territories. In addition, the growing migration from agricultural regions, a consistently high birth rate contribute to an increase in the urban population. In this situation, the best solution to the problems associated with disproportionate levels of development of individual cities, urbanized and agrarian territories, according to the Indonesian political class and the expert community, is the transfer of the capital from Jakarta to another region.

At the same time, the change in the status of Jakarta, the construction of a new capital, the transfer of state authorities will not be able to radically change the situation without making the urbanization processes in the country more balanced. Moving the capital from Jakarta, in fact the largest metropolis in the country, will not solve social and economic problems. Changing the status of Jakarta will not automatically lead to the resolution of the contradictions that exist in other major cities. In addition, the emergence of a new capital will not lead to a solution to the problems associated with corruption, only moving its center of gravity from Jakarta to Nusantara – the new proposed capital.

Thus, solving the problems of urbanization in Indonesia, the most populous Muslim country, is possible only if comprehensive programs are implemented that will affect not only Jakarta, but also other Indonesian cities. The successful implementation of such programs is possible only in the case of a real fight against corruption and the redistribution of financial and political resources, which, taking into account the peculiarities of the development of modern politics in Indonesia, seems extremely doubtful.