The impacts of plan to move Indonesia's capital to Nusantara for Australia-Indonesia organisations

Istana Garuda. Phot credit to Nyoman Nuarta Archive

Credit: Nyoman Nuarta Archive

The plan to move Indonesia's capital from Jakarta to the Nusantara in East Kalimantan, drew a wide range of reactions from experts, officials and the Indonesian public as well as the world.


What about organisations and institutions that involve Australia-Indonesia relations? Are there any responses and actions from them regarding this capital relocation plan?

SBS Indonesian correspondent, Dina Indrasafitri talks with Jennifer Mathews, National President of Australia Indonesia Business Council or Australia Indonesia Business Council.

According to Jennifer, one of the sectors where Australian businesses have great potential to meet Indonesian demand is the infrastructure sector.

“In terms of the construction of a new capital, there is an opportunity to explore cooperation in those (infrastructure) areas,” she explained.

Australia also has considerable potential to meet Indonesian demand in terms of education.

“Right now we can see that the investment from Australian educational institutions is quite large in Indonesia,” Jennifer explained.

One of them that is quite potentially in the context of the archipelago is the proposal to open a branch of the University of Central Queensland in Balikpapan.

According to Jennifer, if the branch or campus opens, the potential to support Australia's relationship with the archipelago is considerable.
IKN's Ground zero
Ground zero for Ibukota Nusantaa - IKN. Photo by Office of Assistant to Deputy Cabinet Secretary of the Repubic of Indonesia for State Documents & Translation
Currently, those considering investing in the archipelago can obtain information from the portal or the 'Investara' website - Jennifer comments that the portal is indeed quite helpful.

“I think Australian industry players in general are looking for very specific proposals. For example, if there is an opportunity to (invest) in the field of waste or waste treatment, Australia is quite a leader in that field, especially at the regional level,” she explained.

Claudia Wijaya, National President of the Australian Indonesia Youth Association or AIYA, stated that to date there have been no plans for AIYA to open a branch in the archipelago or surrounding areas.

AIYA's activities usually revolve around cultural, language exchanges and enriching the social networks of Australian and Indonesian youth. Examples of AIYA's activities include procuring gamelan workshops, activities related to Indonesian and English language training, and screening of Australian films in Indonesia.


Claudia Wijaya - AIYA
Claudia Wijaya - AIYA
Most of the AIYA members still do not have certainty about what will happen, explained Claudia about AIYA's plans regarding the relocation of Indonesia's capital.

“To open a branch in the Nusantara, there must be enough members on site to handle the branch. There must be at least three members of the committee.”

Currently, there are eleven branches of AIYA. In Indonesia, the branches are located in Jakarta, West Java, South Sulawesi, East Nusa Tenggara and Yogyakarta.

The Australian Department of Foreign Affairs and Trade stated that in February 2024, the Nusantara Capital Authority and the National Capital Authority of Australia, the body responsible for the planning and development of Australia's capital, Canberra, had signed an MoU, which will serve as the framework for cooperation between the two agencies in clean and environmentally friendly urban planning cooperation.

The cooperation will be facilitated through the exchange of experts, joint exhibitions and capacity building.

In March, Australian ambassador to Indonesia Penny Williams and OIKN Chief Bambang Susantono launched the Nusantara Biodiversity Master Plan, funded by the Australian Government. The plan is part of a package of assistance from Australia that aims to support the development of the Nusantara NeT Zero Strategy.

In addition, in 2023, ten Australia Awards Nusantara scholarship recipients began their study activities at Monash University Indonesia - The grantees are steeped in studies in areas relevant to the construction of the new capital.


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