The new name translates to “archipelago” in the Indonesian language.
“The move of the capital to Kalimantan is based on various considerations, regional benefits and prosperity. With the vision of the birth of a new economic center of gravity in the center of the archipelago,” said Suharso Monoarfa, the Minister of National Development Planning, according to the Indonesian Parliament Television.
President Joko Widodo first announced that the capital would be relocated in 2019, citing concerns about Jakarta’s environmental and economic sustainability.
It is also one of the world’s most overpopulated urban regions. It is home to more than 10 million people, with an estimated 30 million living in the greater metropolitan area, according to the United Nations.
Indonesia’s House of Representatives Speaker Puan Maharani said the bill to move the capital was approved by eight political groups on Tuesday and only one group rejected it. The Indonesian parliament consists of nine groups of political parties called political groups.
Legislators have emphasized the importance of carefully considering the environmental impact of the new development. According to data from the National Planning and Development Agency, the total land area for the new capital will be about 256,143 hectares (about 2,561 square kilometers) – almost all of it has been converted to forest land.
Indonesia owns most of Borneo, the third largest island in the world, with Malaysia and Brunei each controlling a portion of the northern region.
Sri Mulyani, Indonesia’s finance minister, said during a press conference on Tuesday that there will be five stages of development in the new capital.
The first phase is expected to begin in 2022 and run through 2024, with development expected to last until 2045, Monoarfa said.
Earlier estimates said the ambitious project would likely cost about rupiah 466 trillion ($32 billion), DailyExpertNews Indonesia reported.
DailyExpertNews’s Rob Picheta contributed to the report.