As congested and low-lying Jakarta sinks rapidly, Indonesia's government has revealed that they are planning to move it’s capital from its richest city Jakarta to the forest island of Borneo. What will happen to Jakarta? What about the new capital Borneo? Is there anything related to the construction industry? 

The current capital, Jakarta, home to more than 10 million people, sits on swampy land. Due to climate changing, excessive groundwater exploiting and bursting at its seams, the city is sinking. 2/5 of Jakarta lies below sea level and parts are dropping at a rate of 20 centimeters per year. 

Despite the transferring of the capital, Jakarta will keep growing and continue to be the country’s main commercial hub. The population is on course to reach 35.6 million by 2030, helping it surpass Tokyo as the world’s most populous city. There’s a $43 billion plan to sort out the traffic, including a Mass Rapid Transit rail line that opened in 2019. Moreover, the president is planning a giant wall to keep big waves out for Jakarta’s submergence problem.

While the new capital, which has yet to be named, would be in eastern Borneo, a much safer choice. Closing to the cities of Balikpapan and Samarinda, the region is mostly known for its beaches and dense rainforests. The island has reasonably well developed airports and roads and widespread access to drinking water. Experts and authorities have talked about building a smart, modern and green city that can serve as the capital for a century. In short, the skeleton to the formation of the capital is already in place. All Indonesia has to do is build parts of infrastructures, government facilities and economic centers.

Some 444789.687 acres of land will be used to build infrastructure, buildings and facilities for the new capital, with an estimated $33 billion cost over 10 years, the Indonesia government shows.

There is no doubt that the newly chosen capital, as well as the survival of Jakarta, lies massive opportunities for the construction industry, especially for infrastructure construction. As a huge project, capital moving means enormous outlay for the Indonesia Government, and at the same time, more opportunities for the country and even the surrounding countries. For companies and individuals engaged in construction industry, will you seize the opportunity and the market?