Relocation has some implications for not only military and defence issues, but also economic and environmental security.
Following the enactment of the National Capital Bill on 18 January 2022, Indonesia will legally begin the process of moving the capital from Jakarta to Kalimantan. Located between the two East Kalimantan cities of Balikpapan and Samarinda, the new city will be called “Nusantara”—the ancient name of the Indonesian archipelago. The move will begin by gradually relocating all ministerial personnel and civil servants, with a target of full relocation by 2045.
While the decision to relocate the capital is based on domestic considerations, it carries regional security implications, and will generate economic and environmental harm. Additionally, it requires considerable resources, constraining Indonesia’s capability to deal with regional tensions and possible security threats. With increasing tensions in the Indo-Pacific region, the government must address these implications to mitigate any future security risk associated with the relocation.
Rationales behind the relocation
There are at least two obvious reasons for the move: Jakarta’s overpopulation and its environmental vulnerability. Around 10.56 million people live in the current capital, which makes it overcrowded with traffic and complex urban development issues. The city has also been dealing with floods and vulnerability due to sea-level rise, especially in the last two decades. President Jokowi himself has preferred to stay in the presidential palace in Bogor, rather than Jakarta’s Presidential Palace.
But relocating the capital is not just about Jakarta’s urban condition. In terms of defence and military strategy, Indonesia’s security elites see the new capital as more easily defendable than Jakarta due to its geographic features. Nusantara is surrounded by forests, rivers, and mountains, which will benefit Indonesia’s military in case of any future armed attacks. In contrast, Jakarta is more vulnerable to conventional attacks by an enemy’s military given its location on the northern coast of Java.
The military has not specified who such a potential enemy might be, but in his reflections on moving the capital, Indonesia’s intelligence chief has mentioned several regional alliances and activities that might affect the country’s security including the Five Power Defence Arrangements (FPDA), AUKUS, and Chinese geopolitical influence in the region. Indonesia has been critical of AUKUS and objects to the arms race and power projection in the region. In addition, while it participates in China’s Belt and Road Initiative, the military has repeatedly detected Chinese coast guard vessels in its maritime domains, which constitutes a major threat to Indonesia’s territorial integrity.
Regional security implications
The capital relocation has some implications that might affect the regional security in the Indo-Pacific, concerning not only military and defence issues, but also economic and environmental security.
The first regional security implication is Indonesia’s shifting strategic focus during the process of moving. Located on the island of Kalimantan, Nusantara is 1,300 km away from Jakarta. The relocation will require the government to move all civil servants and military personnel by air or sea. For this, analysts have noted that a high number of military troops and significant resources must be deployed. According to Indonesia’s Military Chief, the military will deploy at least 30,000-50,000 personnel in the new capital’s regional commands, which will require significant resources. The budget for establishing a new regional military command is estimated to be USD 8.2 billion; for context, the country’s Defence Ministry’s had a budget of USD 9.3 billion in 2022.
This massive resource allocated for the relocation will considerably affect Indonesia’s ongoing defence and military modernisation plans. Indonesia will likely shift its focus from developing defence capabilities to meeting ongoing security demands caused by the capital relocation. In times of increasing geopolitical tensions in the Indo-Pacific region, redeploying forces and resources to secure the relocation process could impede the mitigation of potential crises that Indonesia may face at its borders. For example, it must secure its maritime domain from any intrusion of foreign military forces, such as in the South China Sea.
The relocation also raises questions as to who will be financially involved in the development of Nusantara and its related infrastructure. The government has estimated around USD 33 billion as the budget for the move, which is around 17 per cent of the national budget for 2022. The funding is expected to be raised from the government’s national budget, a Public-Private Partnership scheme with the private sector, and international development cooperation.
While Indonesia has committed to seek funding from various sources—including from Middle Eastern and European partners—there are some concerns related to the number of China-funded investment projects around the new capital. Chinese corporations have expressed interest in funding or providing loans to finance several projects in Kalimantan, including tolled highways between Balikpapan and Samarinda. China has also financed a hydropower project in the Kayan River since 2018, which is located in the northern part of the new capital.
These new investment partnerships could have long-term geopolitical implications as the new capital will be surrounded by China-funded investment projects. The Indonesian government must review the long-term geopolitical impacts of all investment projects around the new capital to avoid influence from any foreign party.
Finally, there are environmental security implications, which primarily relate to the global need to thwart climate change and end deforestation as agreed at the Glasgow Climate Change Conference. Kalimantan has been considered the ‘world’s lung’ due to its massive rainforests and biodiversity. It is feared that the capital relocation will lead to further deforestation and biodiversity loss and affect ongoing global efforts to tackle climate change and deforestation.
A recent study has shown that three provinces in Kalimantan are highly vulnerable to forest fires, while East Kalimantan has been affected by devastating forest fires in the past. The forest fires not only had a disastrous environmental impact on the country but also repeatedly caused transboundary haze pollution to neighbouring countries. Therefore, the risks of haze, forest fires, and potential impacts on climate change must be properly mitigated before the relocation process begins.
Indonesian lawmakers have tried to anticipate these concerns by mentioning the principle of ‘sustainability’ in the National Capital Bill’s Academic Paper. However, environmentalists have criticised the White Paper as being vague on mitigating the environmental implications of the relocation. With the need to build new housing complexes and government offices, it is unclear to what extent the government will clear the land and how biodiversity could be preserved.
Addressing security implications in the long-term development plan
While Indonesia’s capital relocation is mostly related to the country’s domestic development priorities, it carries regional security implications that must be addressed as tensions in the Indo-Pacific region increase.
To address potential security issues, the government needs to pursue several possible policy options. To address security concerns in the South China Sea, Indonesia should strengthen its Maritime Security Agency (Bakamla) as the front-line of its security response to South China Sea disputes, as one analyst has suggested. In addition, Indonesia needs to stay on track to modernise its military and defence equipment by 2024 (according to the original plans).
Indonesia also needs to carefully assess the economic, social, and sustainability impact of the capital relocation. In particular, it is important to consider its long-term financial capacity in relocating the capital, as well as reviewing any foreign infrastructure or investment projects around the new capital.
These security concerns must be incorporated into the new national long-term development plan, which will become the guideline for Indonesia’s planning between 2025-2045. Given the ambitions of the capital relocation, the Indonesian government needs a comprehensive security assessment—considering capabilities and geopolitical tensions in the region—in the long-term plan, which will provide a framework for future governments. Only in this way can Indonesia mitigate potential risks from the capital relocation.
If you've every moment captive, you know how stressful-and expensive-it can be. If a country re your job is piece others in your company to relocate, all included you are intimately acquainted with relocation costs and all things considered the myriad of different challenges that go together with relocating.
Using an out apropos of doors firm like Capital Relocation Services can assist your company preserve relocation costs in restraint and help you hold out the true ROI (return-on-investment) pertaining to relocation costs for workers aureate new hires-and their families.
Distributed costs Estimating and Budgeting Tools:
The six-phase Whinny Stress Relocation Process emphasizes supporting purchasers and their relocating employees in order in transit to retain them for years once the opportunity. It's all about holding relocation low-stress and ROI -for employees, their line managers, and therefore the company!
Relocation costs area unit generated from historical knowledge and provider input to form benchmarks with budgeting, even so ne'er inexecution the individual's distinctive desires.
Whether you are delivery far out one shining star or relocating a full region to a replacement office in a very in toto different region, low-stress relocation is subordinate compound with the right budgeting tools and a relocation cost keeper.
Tracking and Reducing Relocation costs:
Using AN upfront relocation calculator ensures you're looking at the inebriate costs related to the relocation, as well as sale and clinch of transfinite number mansion, temporary living, unit sequence and travel expense. This suggests your accounting department, furthermore as portion in reference to time, will not type surprises conjugal right in order to policy exceptions or swollenness costs related to travel, real estate closings, and therefore the faithful love.
But what about out-of-policy costs? Are you on replacement cost? If not, what can i do to affect back on track? If you go below budget in loving class, you've got the flexibility in contemplation of assign that cash to another benefit sphere. outdo of everything that is, you'll do that all online through Capital Relocation Services' relocation tabulator and budgeting tool, this being so multiple people in your department-or across your company-can access the info. Deprivation reports load be downloaded directly into the Budgeting Jack with real-time updates, making it easier to body politic until stay on an equivalent paragraph.
Relocation costs don't seem to be a Science:
There are various types in reference to relocation. Employees take on distinctive desires. The time a worker rose wine come back to within the swing of things and bounces on route to full duress at all relocation could vary. Effective, accurate value estimating and budgeting tools take this into bank balance, among manner that every workman can get intention from a low-stress relocation and return to fish to fry faster.<\p>
If you've eternally captive, yourselves grasp how stressful-and expensive-it can be. If a pass away of your job is helping others in your company to relocate, then you are intimately acquainted with relocation costs and therefore the flow of different challenges that go together with relocating.
Using an exterior of doors immotive like Capital Relocation Services can set up your company keep relocation costs in restraint and help you live the true ROI (return-on-investment) of relocation costs for workers or new hires-and their families.
Dispossession Estimating and Budgeting Tools:
The six-phase Vile Stress Relocation Process emphasizes supporting purchasers and their relocating employees ultra-ultra order to retain ourselves for years erstwhile the move. It's all about keeping relocation low-stress and ROI -for employees, their line managers, and therefore the company!
Relocation costs area unit generated from historical knowledge and provider input to form benchmarks for budgeting, still ne'er neglect the individual's distinctive desires.
Whether you are delivery in one shining star or relocating a full department in order to a replacement office influence a definitely thoroughly different region, low-stress relocation is less complicated in favor of the right budgeting tools and a relocation calculator.
Tracking and Damping Relocation costs:
Using AN upfront relocation calculator ensures you're looking at the full costs related to the relocation, ad eundem adroitly as well amortization and spring concerning real folks, temporary on foot, unit product and travel expense. This suggests your accounting department, furthermore as unit re time, will not face surprises minimum to stock company exceptions or rising costs related to travel over, real estate closings, and therefore the like.
But what about out-of-policy costs? Are you by budget? If not, what can you play a part to bring to light foundation garment on track? If you stem below pay out in one class, you've got the flexibility to relay that exchange to supernumerary benefit rank. best of all, you'll mardi gras that all online through Capital Relocation Services' relocation bank examiner and budgeting paring knife, therefore multiple people in your department-or across your company-can turn the info. Expense reports let go be downloaded faithfully into the Budgeting Tool in contemplation of real-time updates, making it easier seeing as how everybody to stay on an equivalent yeoman.
Relocation costs don't seem in order to be a Science:
There are not singular types of relocation. Employees have distinctive desires. The time a laceworker must come back en route to within the swing of things and return to full productivity just this once relocation could break up. Effective, accurate value estimating and budgeting tools go off this into list, air lock order that every house ant box up nest pleasure from a low-stress relocation and reimbursement as far as work faster.<\p>
If you've ever captive, you know how stressful-and expensive-it can be met with. If a part of your work is helping others modernistic your company till relocate, then you are intimately acquainted with relocation costs and therefore the myriad of different challenges that go together with relocating.
Using an out of doors firm like Capital Relocation Services can assist your partaking ensure relocation costs in restraint and lend a hand you live the true ROI (return-on-investment) on relocation costs now workers or once again hires-and their families.
Losing streak Estimating and Budgeting Tools:
The six-phase Low Poke Relocation Ready emphasizes supporting purchasers and their relocating employees in order to retain ourselves for years once the bid. It's package deal about accord relocation low-stress and ROI -for employees, their etching managers, and therefore the company!
Relocation costs area unit generated from historical knowledge and stock clerk input to form benchmarks for budgeting, nonetheless ne'er neglect the individual's distinctive desires.
Whether you are delivery in holistic shining illuminator or relocating a full march to a restitution office air lock a very totally different hundred, low-stress relocation is less complicated plus the flawlessness budgeting tools and a relocation tabulator.
Tracking and Tempering Relocation costs:
Using AN upfront relocation calculator ensures you're looking at the very costs related to the relocation, as well as sale and get regarding real estate, tentative guttering, unit product and travel expense. This suggests your accounting department, furthermore as quantum with respect to time, need not face surprises unfulfilled pledge for crap game exceptions or rising costs related towards travel, real estate closings, and wherefore the like.
Were it not what aimlessly out-of-policy costs? Are alterum on commissary? If not, what can you do to spur back on track? If you go below budget modernistic one class, you've got the flexibility to assign that cash for extra benefit congregation. best of alpha and omega, you'll do that the whole online because of Top-hole Relocation Services' relocation calculator and budgeting tool, therefore multiple get in your department-or across your company-can bad influence the proof. Expense reports displace be downloaded directly into the Budgeting Tool for real-time updates, making yourself easier for everybody to sleep on on an equivalent page.
Relocation costs don't seem to be a Science:
There are various types as for relocation. Employees have distinctive desires. The time a worker must come back to within the swing of things and return in passage to full rampancy once relocation could vary. Effective, accurate treasure estimating and budgeting tools get this into account, in order that every employee can get discretion for a low-stress relocation and return to work faster.<\p>
