The New Capital of Indonesia: At What Cost? To Whom?

After being elected for the second term in 2019, the seventh President of Indonesia, Jokowi, finally agreed to relocate the nation’s capital to East Kalimantan on Borneo Island. According to BAPPENAS[1] (2021), there are four main reasons why: more than half of Indonesian (57%) have been concentrated in Java, putting enormous pressure on groundwater and declining its quality; high urbanization occurring in Jakarta and its peri-urban areas lead to a massive traffic congestion and declines air quality; Eastern Borneo has no significant risk of disaster; and there is a need to diversify nation economic contribution. However, NGOs[2] criticize the city’s lack of native inhabitants’ rights consideration (Johansyah et al., 2019). Have they been involved in designing Nusantara? The essay aims to understand how far indigenous perspectives are covered in designing Nusantara and which actor will profit most from this project.

This essay will start with two basic concepts: the indigenous’ right to the city and oligarchy. Then, it will present the study context of Nusantara, and three conditions of planning processes in Nusantara: the law drafting, the risk consideration, and conflicted land. It will also discuss how the current process might degrade the indigenous’ right due to oligarchic-system. The essay will be concluded by recommending policy to create a guideline and indicator.

Conceptual Review

A collective human activity to intervene the nature to produce an urban form based on social, political, and environmental objectives is what UN-Habitat (2009) refers to as planning. Such planning practices have been institutionally recognized as the collective action of the various planning actors (government, business entities, and ordinary citizens), which set up the process of decision-making and planning outcomes. As the reality of planning must cover each actor's various dynamic interests and expectations (Healey, 1997), the right to the city is a foundation to listen to all aspirations for achieving urban planning objectives. The right to the city is not only the right to access the existing facilities but also the right to design the city based on the various citizens’ desires through inclusivity (Harvey, 2003).

One of the vital planning actors is the indigenous people. Historically, Horn (2019) claims that the Indigenous seeks to fulfill their needs by exercising their right to the city due to their unequal power relationship with the modern form of authority. The acknowledgement of the indigenous’ right to the city is in line with the dimensions to maximize those right. According to Zarate (2011), these dimensions include exercising tuman rights by considering the living ways of the indigenous to fulfill their daily needs, activating the social function of the city, including land and its properties by preserving the indigenous’ land, and managing natural resources in sustainable ways through the democratic principles by acknowledging the indigenous to govern the environment.

However, exercising the right to the city might meet a dead end due to oligarchy (Johnston, 2005). It is a systemic-corruption that threatens the dimensions of the right to the city through the abuse of democratic power. Vergara (2020) argues that oligarchs refer to the minority who abusively control the inner functioning of the system. When a minority accumulates the collectively created wealth, how the wealth is being used will only benefit the powerful few rather than the many.

Nusantara

The new capital will be in the Province of East Kalimantan, between Samarinda City in the north and Balikpapan in the south. The current development priority has been concentrated in the planned government core area (Figure 1), focusing on water provision, drainage, transportation networks, and land acquisition (Republic of Indonesia, 2022c). Based on the principles of Sustainable Development Goals, the vision of Nusantara will be developed to be a Forest City, Sponge City, and Smart City (Republic of Indonesia, 2022a). These concepts will be implemented to be Nusantara as a ten-minute city, a net-zero emission city, and a green city defined as >75% of its area covered by forest (BAPPENAS, 2021).

 

Figure 1 Nusantara, as the capital city, will be divided into three areas: the government core area, the capital area, and the capital development area (Republic of Indonesia, 2022c).

There are 3.7 million inhabitants in East Kalimantan, making it the third least populated province at 6.15% of the total Indonesian (BPS, 2020). This province primarily relies half of its domestic product on the mining sector at 49.48%, followed by the manufacturing, construction, and agroforestry sector (BPS, 2023). Such composition made East Kalimantan the wealthiest province in Borneo and the top five nationally (BPS, 2022). Uniquely, the mining area is not present in the Government Core Area (KIPP) and the Capital Area (KIKN), which will mainly occupy the Sepaku District area in the North Panajem Paser Regency[3]. Most areas are forests on which two villages, Bumi Harapan and Pemaluan, rely. Currently, 3,714 inhabitants mainly work as timber and palm agriculture farmers (BPS, 2021). The farmers consist of the migrants[4] and the native Dayak[5] indigenous community known as the Paser Balik people (Firnaherera & Lazuardi, 2022).

The Capital Relocation

The Drafting Process

The capital relocation has been formally billed through the passing of Law Number 3 of 2022 on The Capital City. Jati (2022) expresses that it is one of the fastest bills ever processed by the legislative, taking less than a month from mid-December 2021 to early 2022[6]. It appears that the bill does not consider the perspectives of the local inhabitants. AMAN[7] verifies this notion as the first bill draft did not regulate indigenous-related activities (Thea, 2022). Although the final version already acknowledges the indigenous land and communal rights, AMAN argues that those verses are ‘empty words’ as the law does not solve the ongoing land conflicts between the Paser Balik with palm and timber corporations (Agencies, 2022).

Law Number 3 of 2022 is not a democratic process to reach a mutual consensus with the indigenous. There is no mutual agreement recorded and concluded in the people aspiration council. Based on verse 37, this council is a form of dialogue forum that merely aims to capture every perspective on this mega-project. Ironically, the law says nothing about the consequences for the capital authorities if no voices are accommodated in the decision-making. AMAN argues that such uncertainty is nonsense as there is no bargaining power in the aspiration council which depicts a smooth violation of democracy (Basyari & Sulistyo, 2022). Paser Balik in Pemaluan said ," No one wants to hear our voices. I want to cry and scream. We feel like being colonized even though we are in a free and independent country" (Naem, 2022). They even noticed that their land will be the governmental core area of Nusantara from the television news, not from a consultation (Kusumawardhani, 2022). This is a clear violation of what Purcell (2003) refers to as the right to participate in the production of urban space, potrayed by the unequal position of each actor in the closed-decision process. Although expressing opinions is encouraged, the Indigenous has not received feedback on how their input influenced the decisions.

The Risk of Not Being Heard

Since the bill’s passing, 162 granted permission for the corporation for mining, plantation, and forestry, which overlap with the indigenous lands in Nusantara, remain unchanged (Agencies, 2022). According to Firnaherera and Lazuardi (2022), such a crucial problem continues to limit indigenous activities to fulfill basic needs such as water and fish due to limited access, forest conversion, and a degraded environment. The studies explain that such a massive process has been accelerated since the 70s when Soeharto began the neoliberalism rattan and mining projects to compete in the global market, massively converting the forest of Borneo into a monoculture and coal sites. This was followed by an enormous migration wave that marked the Javanization[8] in the Dayak land. A study by Kusumawardhani (2022) shows that Paser Balik has no option but to adapt to the changes to survive by working as a truck driver and waged farming worker. This phenomenon remains vital to answer the question raised by Harvey (2003), are we being re-made by the chaotic city around us? It is a ‘yes’ for the Dayak community as they are the ones who must adapt from the initial neoliberalism project to the latest-exclusive new capital development.

Today, rattan, once was known as the indigenous’ original product of East Kalimantan, has been substituted with palm oil and coal mining sites to follow the global market trend (Meijaard et al., 2014). Such a change can be traced back to the implementation of the Basic Forestry Law in 1967, when the government claimed most of the forest in Borneo as stated-owned forest and divided it into territorial rights. During the 1970s to 1980s, East Kalimantan was known as prominent big producer of rattan. According to the law, it was set up to be the focus of enormous scale of rattan production to fulfill the international demand. Through the lens of political ecology, Peluso (1992) describes such an action as an ignorance to the existing native village forest management. The law superimposed the native customary law to exploit the rattan in maximum ways. Eventually, the rattan trade was at its peak in the late 1970s, putting it at the risk of depletion. Such ignorance to the indigenous ways of living triggers another problem of competing interests between the natives and the migrants or ‘unwilling hosts’ (Li, 2011),

“… migrants to East Kalimantan from all over Indonesia … have turned to forest extraction when they face crises of reproduction, unable to accumulate the surpluses they anticipated in the jobs that initially attracted them, as logger, contract plantation labour or transmigrant. Many have survived their personal crises by imitating the diverse and flexible survival strategies of Kalimantan’s Indigenous people but without applying time-worn local controls on production. They exploit whatever forest products are demanded on local and export markets, dealing in cash with ad hoc traders and ignoring village resource territories.” (Peluso, 1992, p. 54)

A city has never been peaceful, free of conflicts and violence, so the right to the city must be in line with basic human rights (Harvey, 2003). Right to the city must embrace fundamental freedoms and collective well-being by emphasizing social justice, equality, and dignity (Zarate, 2011). However, the historical development process in Borneo portrayed the opposite due to the changes that were never resisted without deadly conflicts. Tirtosudarmo (2018) finds that the leading cause of riots was unfair treatment between two competing groups. The government allocated more funds to develop the transmigrant settlements through road construction, agricultural offices, health, and school provisions than the population-host settlements. It creates economic disparities between the migrants and the natives, which triggers the jealousy fire that often ends up as ethnic and religious conflicts[9]. The study also describes one of the deadliest rampages in Indonesia’s history, between Dayak and Madurese in Borneo from December 1996 to February 1997. The clash between the two clans killed hundreds of Madurese migrants due to cultural misunderstanding. Indeed, the Nusantara mega-project must take this sad fact into account. The potential re-occurred riots remain as there are two major concerns of the Paser Balik: their lack of modern skill to compete with the newcomers; and their insecurity of becoming poor due to being treated as the only ‘audience’ in the capital mega-project (Kusumawardhani, 2022).

The overlapping land

There is an overlapping of land ownership status in Bumi Harapan and Pamaluan, which is planned to be the governmental core area. While the indigenous of both villages have a letter known as segel to grant the the ight to make a living in the stated-owned forest which was originally belong to them before the Forestry Law 1967 imposed, the private companies have the concession permit to exercise their businesses ithat forestst (Kusumawardhani, 2022). There is an unequal condition between both parties. The concession permit granted to the private companies have the right to control the segel belong to the indigenous people, which means that the natives are merely considered as user and not the landowner of the land. Such different power limits the freedom of the native villagers to plant their preferred commodity[10]. Another empirical finding by Kusumawardhani (2022) also show that the native who has no user right on land will have to look for other jobs,

 “The exclusionary process happened since the common poverty has been converted to private property. Especially in Bumi Harapan and Pamaluan, these villagers have experienced a changing relationship between them and their land, featured by transforming a rural community from shifting cultivators (independent farmers) into small-scale palm oil producers. … those who do not own more than 5 hectares of land have to look for side jobs. Villagers are choosing to go fishing partially, … becoming farm-workers, opening small stalls, or just waiting for any precarity job call them for work” (Kusumawardhani, 2022, p. 23)

 

Right to the city should ensure the equal distribution of land and territory including the guarantee the freedom to farm and the benefits of it, social just, and balanced territory (Zarate, 2011). The opposite of this definition results in exclusion. In the agrarian study, presentents two concepts of exclusion. Firstly, exclusion as a condition is a situation where large number of people lack access to land due to the possession of land by private property, while excl. In contrast,s a process refers to the violent actions of evicting the poor from their land by powerful actors. The historical case of Paser Balik is in line with both conditions without any guarantee of an equal or balanced distribution of land territory to support the right to the city. The indigenous people lands are not well acknowledged through segel and companies’ concession permit resulting in ownership land transfer from the collective villagers’ land to private land. Furthermore, the eviction comes from the limitation of land access that can be exercised by the Indigenous such as hunting fish, collecting water, and plant their preferred commodity due to limited access, less and polluted water[11], and social tensions to migrants (Kusumawardhani, 2022).

Who are the powerful actors?

The very first reason to choose East Kalimantan as the new capital city is the easiness in land acquisition as most of the land is state-owned land (BAPPENAS, 2021). How is the land clearing process? [12]  A NGOs coalition report by Johansyah et al. (2019) argues that the capital relocation is only Jokowi’s gimmick to distribute the wealth to the opposition party[13]. During that year, there were also two massive-chaotic social protests across Indonesia’s cities, ‘Corrupted Reformation’ and ‘Cancel Omnibus Law’[14] (Figure 2). According to Saifullah (2020), the latter demanded to cancel the Omnibus Law draft as it was prepared in only three months, leveraging the easy to do business to attract the foreign investment[15], and leaving no chance to consider the labors’ perspective. Suspiciously, the draft was initially contested by Golkar Party in which latterly, Jokowi gives the position Minister of Economic to Airlangga[16].

Figure 2 Massive protests to oppose the bill of new corruption and omnibus law were occurring in several cities of Indonesia including Bandung during 2019 and 2020. The protesters considered the House of The Common as part of oligarch representing the will of their own political parties, not the people. It was the biggest demonstration after the Reformation in 1998 (Wijaya, 2020). The images were taken personally by the author in September 2019.

Figure 3 shows that the existing location of Nusantara is full of concession permits to exploit the coal, forestry, and agriculture in Nusantara. According to Johansyah et al. (2019) and Watchdoc Image (2019), most of the stock owners are the actors who have high positions in the political parties and national governmental boards. Most of them were also actively participating and supporting both Jokowi and Prabowo in the election 2019. Additionally, there is an ironic empirical finding by Sagala et al. (2014). Even though East Kalimantan is known for its high GDP per capita, the province is in the top five of Gini coefficient index. It implies a notion where the benefits of natural resources are distributed. Such raises the second question, who will really get the benefits from the land acquisition process in Nusantara?

The acknowledgment of the indigenous right is blurred due to the wealth distribution among the elites of the government. It is likely that Nusantara will emphasize the exchange value and the commodification of the city which is clearly not in line with the principle of the right to the city by Purcell (2003). The phenomenon above also depicts the inexistence of distributive dimensions in social justice as there is no equal distribution of the natural resources’ benefits especially for the indigenous. Furthermore, the Pasir Balik ends up being the “deprived”, giving up their land and their cultural activities by being palm oil monoculture farmers and coal truck drivers,

“The deprived are those who directly oppressed, the homeless, the hungry, the imprisoned, the persecuted on gender, religious, and racial grounds… those superficially integrated into the system and sharing in its material benefits, but constrained in their opportunities for creative activity, oppressed in their relationship… unfulfilled in their lives’ hope.” (Marcuse, 2009, p. 190)

Figure 3 According to Johansyah et al. (2019), there are 145 concession permits to exploit coal, forestry (timber), and palm oil monoculture. Those permits only belong to 55 actors who have elite positions in the national government. The movie to expose this oligarch network in East Kalimantan published by Watchdoc Image in 2019, Sexy Killers, received the Gwangju Prize for Human Rights Award and the Ramon Magsaysay Award in 2021.

Re-thinking Policy

Indigenous people have the right to live in peace, dignity, freedom, and must not be the subject of any violation including removing their land. To have a project in their land, an adequate consultation with the Indigenous is essential. An example is the case of Diaguita vs Goldcorps in 2014, when the Supreme Court of Chile considered ILO Convention of 1989[17] and set consultation guidelines for Chilean government to follow (Phillips, 2015): good faith negotiations, the government must be transparent in determining the impacts, set forth manner of consultation, assure highly participation with indigenous, collect informed consents, and follow the indigenous’ customary law. However, such is not enough for the Court to constitute a proper consultation. Thus, an indicator to evaluate the presence of the indigenous’ voices. Vancouver Indigenous Healing and Wellness Strategy is an act to measure the indigenous’ well-beingness through a participatory approach (Heggie, 2018). It aims to understand how the first nations determine their “wellness” and how to monitor the indicators (Geddes, 2015).

The indigenous have a role as planners to claim their indigenous rights through various activities such as negotiation and contestation processes without violence (Horn, 2019). In Nusantara, the Chilean guideline will bring up the unheard concerns of the Indigenous: land ownership and their inferiority. Then, the Canadian indicators will ensure the delivery of the Indigenous’ concerns are acknowledged. Furthermore, AMAN has the role to consolidate, capacity-building, and knowledge co-production among the Indigenous communities across Indonesia to increase their power to contest the elite oligarch. It is important as each Borneo native group often has different views on the right to land ownership (Großmann, 2019). Thus, it would be a fair process to understand what the Paser Balik truly desire as part of their right to the city, how their perspectives on the land ownership influence the decision-making and achieving the Nusantara planning’s objectives.

Conclusion

The decision to relocate Jakarta to East Kalimantan escalated the chaotic-hot issues in Indonesia. Its formulation during 2019 to 2020, together with the new corruption and omnibus laws are “unconstitutional” as they took an extremely short-time to draft, no time to consider public aspirations, and highly-potentially benefitted the elites (Saifullah, 2020). Currently, Nusantara is on the track to merely fulfill the desires of the elites, ignoring the Indigenous’ right to their land and the new capital. The plan does not address the exclusion of the Paser Balik through land conflict that cut their connection with their cultural activities since the 1970s (Kusumawardhani, 2022). Such also might lead to horizontal riots that violate human rights (Tirtosudarmo, 2018). A proper consultation and participatory indicator are indispensable to acknowledge the indigenous’ right to the new capital city. Furthermore, an NGO coalition’s role is essential to increase the bargaining power of the natives to challenge the oligarch behind Nusantara development.

[1] BAPPENAS stands for National Development Planning Agency of Indonesia.

[2] NGO stands for Non-profit Government Organization. Four NGOs are actively criticizing the Nusantara project: Forest Watch Indonesia (FWI), Indonesian Forum for Environment (WALHI), Mining Advocacy Network (JATAM), and Indigenous People Alliance of Nusantara (AMAN).

[3] The common hierarchy administrative level in Indonesia: National > Province > Regency/City > District > Village.

[4] During 70s, President Soeharto executed a migration program to reduce the human pressure on Java Island by moving the Javanese to other islands of Indonesia including Borneo.

[5] Dayak is the common name for the native inhabitants in Borneo Island. There are a lot of Dayak tribes, one of them is Paser Balik.

[6] Such a process usually should take at least a half year.

[7] AMAN stands for Indigenous People Alliance of Nusantara. The term “Nusantara” here refers to Indonesia as a whole country, not only as the new capital city. It is an ancient Sanskerta word used to describe an archipelago region in Southeast Asia. “Nusa” means “islands”, while “Antara” means “in between.”

[8] The word refers to “How the Javanese live”. It is a doctrine-process to force the Dayak to live like a Javanese.

[9] Most of the migrants are from Java and Madura. They commonly identify themselves as Moslem, while the Dayak are Christian.

[10] The users of the land are only permitted to plant a commodity decided by the landowners, palm oil (Kusumawardhani, 2022).

[11] Some Indigenous expressed their concern on the polluted and less water due to palm oil monoculture which resulting them to buy clean water for everyday needs at IDR 100.000/AUD $10 per taking (Kusumawardhani, 2022).

[12] There is no information yet on how the land clearing and acquisition will be processed (Kusumawardhani, 2022; Republic of Indonesia, 2022b).

[13] 2019 is a politic year for Indonesia as it’s the year to elect the new president for a five-year period. The elected president, Jokowi, gives Prabowo – his election rival – the Minister of Defense position, marking the beginning of Indonesia’s politic without opposition side (Johansyah et al, 2019).

[14] Reformation is a well-known Indonesian transition era to be more transparent and democratic nation in 1998, marked by the resignation of 32-year Soeharto Presidency dictatorship. However, the legalization of corruption and omnibus laws in 2019 and 2020 are seen to betray the vision of Reformation 1998.

[15] Such as imposing less tax and no environmental assessment. However, the law put Indonesia as ‘slave nation’ as it gives less protection, lack of safety nets, provide unequal assistance to the workers, as well as gives no sanctions for the entrepreneurs who violate the workers’ rights (Saifullah, 2020). Foreign investment is crucial as it is expected to fund 80% of the new capital development (BAPPENAS, 2021).

[16] Airlangga is the chairman of Golkar Party who previously opposed the Omnibus Law.

[17] International Labor Organization Convention on the Indigenous Land and Tribal Peoples in 1989.

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