President Joko Widodo of Indonesia announced the relocation Monday. This is necessary because there are concerns over the future of Jakarta. It is not only the congestion but also its rapid sinking into the Java Sea due to over-extraction of groundwater. The new address will be Borneo Island in close proximity of a couple of relatively underdeveloped cities. Jakarta has been the financial hub of Indonesia since 1949. The president acknowledged that relocation would be a “mammoth and expensive undertaking.” While speaking in a televised speech he said, "As a large nation that has been independent for 74 years, Indonesia has never chosen its own capital."

CNN reports about the proposed new location of Indonesia’s capital.

It is a jungle-covered area on the east of Borneo Island. The main reason for shifting is the rapid expansion that Jakarta witnessed in recent years. These embrace a whole lot of issues related to the Environment, economy, and safety. Hence, the government plans to move out of the city in order to reduce the strain on the infrastructure of the massive metropolis.

Relocation will be a long-term project

The population of Jakarta involves in excess of 10 million people. This is the data from the United Nations. Most of them reside in the greater metropolitan area, resulting in the city becoming one of the “world's most overpopulated urban regions.” Another problem is the excess removal of groundwater.

It has raised fears about the capital disappearing in the Java Sea. Jakarta sits on swampy ground with the sea to its north. This makes it prone to flooding. Over-extraction of groundwater is a major problem in cities where there is a regular influx of people. They need water and groundwater is the answer. Planners fail to realize that the continuous extraction of this water upsets the ecological balance.

CNN goes on to add that the present capital suffers from massive air pollution due to heavy traffic congestion on its roads.

The new capital in Borneo Island has yet to get a name and funds necessary to set it up could be around $34 billion with a timeframe of approximately 10 years. The island has an abundance of rainforests and faces issues of deforestation.

Jakarta is sinking by nearly 10 inches annually

According to BBC, the city of Jakarta is sinking into the sea at a rate of nearly 10 inches every year and the situation is precarious. Almost half is already gone below sea level. Therefore, President Joko Widodo wants to shift the capital of Indonesia to the island of Borneo. He said, "The location is very strategic - it's in the center of Indonesia and close to urban areas.” Another plus point is fewer chances of facing natural disasters in the new location.

Groups who worry about the environment have expressed concerns regarding the fate of Endangered Species in the area. It is the natural habitat of orangutans. Incidentally, other countries have changed their capitals in the past and Indonesia will be following their example. They are Brazil, Pakistan and Nigeria.