Nusantara (II/II): Indonesia's sustainable vision for a thriving future

This is part two of a two-part series on Nusantara, Indonesia's new capital. You can find part one here.

Political implications and governance

Government policies and support for Nusantara

Sustainable development programmes rely significantly on supportive government policies and strong political commitment to succeed. In the instance of the Nusantara initiative in Indonesia, the government was critical in providing policy frameworks and implementation support.

The Indonesian government understands the significance of sustainable development and has incorporated it into its national development plans. These initiatives, notably the National Medium-Term Development Plan (RPJMN) and the Sustainable Development Goals (SDGs) are aligned with the Nusantara project. These policy frameworks provide strategic direction and foster an atmosphere in which the project's objectives can be met.

To make it easier to implement sustainable ideas, the government has put in place a number of legislation and regulations that encourage ecologically responsible behaviour. Regulations on renewable energy production, waste management, and environmental impact assessments, for example, are in place. These policies create a legal framework in which the Nusantara project can operate.

Through financial assistance and incentives, the government can enhance its commitment to sustainable development. It allots funding and resources to support project implementation, such as infrastructure investments, R&D, and capacity building. This will enable the project to scale up its activities more effectively and fulfil its sustainability ambitions by leveraging governmental assurances and the availability of financial resources.

Collaboration between national and regional authorities

Effective collaboration between national and regional authorities is essential for the successful implementation of sustainable development projects. In the case of the Nusantara project, close coordination and cooperation between these authorities are instrumental in achieving its objectives.

The Indonesian government has adopted a decentralized governance system, which empowers regional authorities to make decisions and implement policies that align with local needs and priorities. The Nusantara project leverages this governance structure by collaborating closely with regional authorities, including provincial and local governments.

National and regional authorities collaborate in a variety of ways. To begin, it entails collaborative planning and decision-making processes to ensure that the project's goals are in line with regional development plans and priorities. This ensures that the project's activities are relevant, adapted to local settings, and address each region's unique challenges and opportunities.

Second, collaboration includes the exchange of resources and skills. National authorities give regional authorities technical assistance, capacity-building programmes, and knowledge transfer. This supports the successful implementation of sustainable practises at the local level and fosters the exchange of knowledge and best practises across regions.

Coordination between national and regional agencies allows for effective monitoring and evaluation of project development (the Nusantara Capital City Authority was established in March 2022 and will report directly to the President). To track the project's impact and outcomes, regular reporting methods and data exchange platforms are established. This allows both levels of government to evaluate the efficacy of interventions, identify areas for improvement, and make informed policy decisions.

The Nusantara project's collaboration between national and regional agencies ensures a cohesive and coordinated approach to sustainable development. It enables the project to capitalise on local knowledge, resources, and experience while remaining aligned with national goals and priorities. This collaboration strengthens governance mechanisms and increases the project's social, economic, and environmental sustainability.

Nusantara's continued prosperity will be dependent on favourable government policies and a strong political commitment. The project can efficiently implement sustainable measures thanks to the government's alignment with national development strategies and financial support. Collaboration between national and regional governments also improves project implementation by incorporating local perspectives, pooling resources, and increasing coordination. Such political ramifications and governance structures aid the project's success in fostering sustainability and meeting its goals.

Nusantara as a model smart city for sustainability

Implementation of innovative sustainable practices

The Nusantara project in Indonesia aspires to be a model smart city for sustainability by introducing innovative practices that enhance environmental awareness, resource efficiency, and social well-being. Nusantara showcases how a city can use innovation to overcome complex sustainability concerns by integrating technology and sustainable development concepts. The following are some critical features of the project's implementation:

1. Smart infrastructure: Nusantara focuses on constructing smart infrastructure that optimises resource utilisation and improves people's quality of life. This includes the implementation of smart grids, intelligent transportation systems, and waste management systems that are efficient. Nusantara ensures resource efficiency and decreases environmental impacts by leveraging technologies such as the Internet of Things (IoT) and automation.
2. Digitalization and data analytics: The project emphasises the use of digital technology and data analytics to improve decision-making processes and allocate resources more efficiently. Nusantara can monitor and regulate different aspects of urban life, such as energy use, water usage, and traffic patterns, using sensors, data collecting, and analysis. This data-driven approach enables targeted interventions and successful sustainability plans to be implemented. Digital tools and their associated data analytics will also be important to Indonesia’s agriculture industry beyond the realm of the smart capital Nusantara. As agriculture-related emissions account for 24% of the global total emissions, the ability to use technology to decarbonise and reduce methane output (x25 more harmful than carbon) will be critical towards Indonesia’s net zero and emissions ambitions. 
3. Digital services for sustainable living: Nusantara uses digital platforms and services to empower its citizens and promote sustainable living. This includes smart metering systems that allow consumers to monitor and manage their energy and water consumption, mobile applications for trash management and recycling, and digital platforms for sharing resources and increasing community engagement. These digital services promote lifestyle change, stimulate sustainable practises, and instill a sense of ownership in citizens.
4. Green building and energy efficiency: The construction of green buildings and energy-efficient infrastructure is a priority for Nusantara. The project promotes the use of environmentally friendly building materials, designs that maximise natural lighting and ventilation, and the use of renewable energy sources. Nusantara decreases greenhouse gas emissions and contributes to a more sustainable urban environment by promoting energy-efficient practices and renewable energy integration.

Showcasing Indonesia's commitment to sustainability 

Nusantara is a major project that demonstrates Indonesia's global commitment to sustainability. It emphasises the country's efforts to address environmental concerns, encourage green growth, and improve inhabitants' quality of life. Here are some major indicators of Indonesia's commitment:

1. International collaboration: To learn from global best practices and contribute to the global sustainability agenda, the Nusantara project actively engages in international collaborations and knowledge sharing. Nusantara shares its experiences and lessons learnt through relationships with international organisations, academic institutions, and other smart cities throughout the world, while also obtaining vital insights to further develop its sustainability activities.
2. National policy framework: The Nusantara initiative is consistent with Indonesia's national policy framework for long-term development. The Indonesian government understands the value of sustainability and has incorporated it into national development goals such as the RPJMN and the SDGs. Nusantara is an example of policy implementation that displays the government's dedication to converting policies into practical actions on the ground.
3. Public engagement and knowledge: The Nusantara project emphasises the necessity of public knowledge and engagement in accomplishing sustainability goals. Through educational initiatives, community outreach programmes, and participatory decision-making procedures, it engages residents. Nusantara develops a sense of ownership and social responsibility for constructing a sustainable future by including the public in the design and implementation of sustainability programmes.
4. Sustainable economic development: Nusantara understands the interdependence of sustainability and economic development. The project encourages the development of green industries, sustainable tourism, and environmentally responsible businesses. Nusantara exemplifies a paradigm of sustainable economic growth that combines environmental protection and social progress by incorporating sustainability into economic activity. Echoing the call at the recent Paris Summit in June 2023 where global leaders rallied to acknowledge that developing countries (or the global south) will not sacrifice development while engaging in global efforts towards climate change, it is critical that Indonesia, ASEAN’s largest economy remain steadfast to the cause. 

The Nusantara project in Indonesia illustrates how a city can be transformed into a model smart city for sustainability. Nusantara demonstrates how technology and sustainability may coexist by implementing innovative sustainable practices such as smart infrastructure, digitalization, and green construction projects.

Through harmonising with national policies, engaging in international partnerships, raising public awareness, and fostering sustainable economic development, the project demonstrates Indonesia's commitment to sustainability. The accomplishments of Nusantara contribute to a global understanding of how smart cities can pave the road to a more sustainable and liveable future.

Nusantara's significance to the world and Indonesia's economy

Attracting international investments and attention

Due to its lofty sustainability aims and unique strategy, the Nusantara project in Indonesia has attracted significant international investment and attention. The project's dedication to building a smart city that prioritises environmental sustainability, efficient resource management, and improved quality of life has piqued the interest of worldwide investors and sustainability-focused organisations. Here are some significant characteristics that contribute to Nusantara's attractiveness: how smart cities may pave the road to a more sustainable and liveable future:

1. Leadership in sustainability: Nusantara promotes itself as a leader in sustainable development, demonstrating Indonesia's dedication to environmental stewardship and sustainable practices. This attracts investments from businesses looking to align their portfolios with sustainable efforts and capitalise on the rising market for green technologies and services. From a geopolitical perspective, it is important that Indonesia takes the lead for ASEAN’s climate ambition as they have the pedigree to be binding for stability and logical progression towards a shared ASEAN vision of sustainability. 
2. Market potential: With its large population and increasing middle class, Indonesia provides enormous market potential for enterprises in a variety of industries. The focus of Nusantara on sustainable development and smart infrastructure opens up the potential for enterprises to produce innovative solutions, goods, and services that are suited to the needs of a sustainable city. This market potential attracts worldwide investment, resulting in economic growth and job creation. As with all rapidly developing countries, the need to reduce the wealth gap by encouraging sustainable development will be pivotal in Indonesia’s future social and economic cohesion. 
3. Global recognition: As Nusantara is recognised as a model smart city for sustainability, international organisations, governments, and professionals in the field are taking notice. This acknowledgment not only strengthens Indonesia's status as a forward-thinking country, but it also attracts more investments and partnerships, bringing in knowledge and resources to support the project's ongoing growth and success. This will also likely have a spillover effect that will bolster sustainability, innovation and economic activities in ASEAN.

Potential for economic growth and development

Expanding from the previous section’s commentary, it is expected that the Nusantara project has significant potential for economic growth and development, contributing to Indonesia's overall economic progress. Here are key aspects that highlight the project's potential:

1. Job creation: The development and operation of Nusantara necessitate a wide range of talents and knowledge, resulting in job possibilities in a variety of areas. Nusantara's expansion creates jobs and supports local economic activity across the board, from building and infrastructure development to technological services and green sectors. Indonesia remains one of the few remaining ASEAN economies to benefit from a large labour pool. The development of the Nusantara project will act as a catalyst to attract better jobs and FDIs into the country to improve the lives of the average Indonesian.
2. Innovation and entrepreneurship: Nusantara's emphasis on sustainability and smart technologies generates an atmosphere suitable for innovation and entrepreneurship. The project promotes the growth of startups and businesses focusing on sustainable solutions, thereby establishing a dynamic ecosystem for innovation, research, and development. This, in turn, encourages economic growth, attracts talent, and boosts Indonesia's competitiveness in the global market. Fostering closer working relationships with known innovation hubs such as Singapore so that both countries can leverage each other’s comparative advantage is key to a sustainable, collaborative future.
3. Economic diversification: Nusantara's emphasis on sustainable development adds to Indonesia's economic diversification. The project decreases dependency on existing sectors and opens up new paths for economic growth by supporting green industries, renewable energy, and sustainable tourism. This diversity increases the Indonesian economy's resilience and minimises its sensitivity to external shocks. This will push Indonesia to develop new competencies and develop greater resilience through better ASEAN networks and through the understanding of how sustainability can impact key elements of water, food and energy security. 

Contributing to Indonesia's goal of becoming the 4th largest economy

Nusantara's success and continued development align with Indonesia's goal of becoming the 4th largest economy in the world. As a flagship project, Nusantara plays a crucial role in driving economic growth and supporting Indonesia's long-term vision. Here's how Nusantara contributes to this goal:

1. Infrastructure development: Nusantara's emphasis on modern and efficient infrastructure is consistent with Indonesia's infrastructure development goal. Nusantara improves the Indonesian economy's overall competitiveness and productivity by investing in smart transportation systems, renewable energy infrastructure, and digital connectivity. There will be emphasis on the ability to generate ESG-related data for better monitoring, analysis and control of key environmental parameters and for the municipal government to make better social and government policies through analytics. 
2. Long-term economic growth: Nusantara's sustainable practices and green initiatives help to drive long-term economic growth by lowering environmental risks, increasing resource efficiency, and attracting investments in sustainable businesses. This long-term economic growth helps Indonesia's ambitions to rise in the global economic rankings. Most importantly, leaders and investors of Nusantara need to have a longer-term view towards their sustainability focus business models as it will require innovative iterations, patience and contextualisation in order to thrive in a future economy. 
3. Global competitiveness: Nusantara's positioning as a model smart city for sustainability enhances Indonesia's global competitiveness. The project will showcase the country's ability to integrate innovative technologies, address sustainability challenges, and create an attractive business environment necessary for FDIs. This bolsters Indonesia's image as an investment destination and strengthens its economic standing on the world stage. This will also be critical to propel Indonesia as the regional sustainability champion to further investments in sustainability technologies and processes. 

The Nusantara project in Indonesia is extremely important to the world and the Indonesian economy. Nusantara demonstrates Indonesia's commitment to sustainability and positions itself as a key player in the global sustainability movement by attracting international investments and attention, contributing to economic growth and development, and aligning with Indonesia's goal of becoming the fourth largest economy. The project's unique strategy and emphasis on smart infrastructure and sustainable practices serve as a model for other countries looking to reconcile economic growth and environmental stewardship.

Potential impact, challenges, and criticisms

Positive impact on local communities and quality of life

The Nusantara project in Indonesia has the potential to benefit local people and improve overall quality of life. Here are a few major areas where the project can make an impact:

1. Improved infrastructure: Nusantara's emphasis on modern and efficient infrastructure, such as transportation systems, utilities, and digital connectivity, has the potential to greatly improve access to key services and enhance connectivity inside and beyond the city. This, in turn, can boost economic possibilities, social interactions, and general well-being.
2. Job creation and economic possibilities: The creation and operation of Nusantara will generate job possibilities in a variety of industries, promoting local economic activity and providing income sources for the local community. This can help to alleviate poverty, reduce income disparity, and enhance livelihood
3. Improved services and amenities: Nusantara's long-term strategy prioritises the provision of high-quality public services such as healthcare, education, and recreation. The initiative intends to improve inhabitants' living standards and access to key services by investing in these areas, contributing to an overall improvement in quality of life. This will be of critical importance for the continued positive cohesiveness of Indonesian as they move towards a shared sustainable future. 

Challenges in infrastructure development and implementation

Despite its potential benefits, the Nusantara project faces several challenges in infrastructure development and implementation. These challenges include:

1. Financing: Developing long-term infrastructure necessitates major investment. Obtaining appropriate finance from both public and private sources can be difficult, especially given the project's size and complexity. To tackle this difficulty, it is critical to identify novel funding channels and attract long-term investments. There are grounds for optimism as the recent Paris Summit has signaled the radical rethinking of providing financing to development countries via better interest rates, foreign exchange underwriting, enhancements in the workings of Multilateral Development Banks (MDBs) and other global financial instruments are used (such as SDRs). I also believe the regional private and philanthropic investments are warming to the idea of new innovations in financing such as enhanced Public Private Partnerships with a philanthropic element and other innovative financial structuring models. 
2. Technical complexity: Creating contemporary, efficient infrastructure necessitates the incorporation of advanced technology and the integration of complex systems. This necessitates specialised knowledge and collaboration among numerous stakeholders, such as engineers, architects, and urban planners. During the deployment phase, managing technological difficulties and ensuring seamless integration of various infrastructure components can be difficult. Enhancements to the Indonesian education framework to take into account the importance of STEM and environmental issues will be important to mobilize domestic manpower for greater innovation. 
3. Land acquisition and resettlement: Infrastructure development frequently necessitates the acquisition of land, which can raise concerns with land ownership, compensation, and the resettlement of impacted communities. It is critical to resolve these concerns in a fair and transparent manner while taking into account the rights and well-being of affected communities, in order to reduce social tensions and assure the project's success. This is also likely the most sensitive topic that requires strong leadership as well as empathy while being unwavering at key metrics for the intended objectives and key results (OKR as opposed to KPI). 

Addressing environmental concerns and social equity

Nusantara's sustainable development must prioritize environmental concerns and address social equity issues. Some key considerations include:

1. Environmental impact assessment: A complete environmental impact assessment is essential for identifying and mitigating the project's potentially negative environmental repercussions. This assessment should look at things like habitat degradation, water and air pollution, and carbon emissions. Adopting sustainable practices and implementing suitable mitigation measures can help to reduce environmental damage.
2. Social equity and inclusion: It is critical to guarantee that the benefits of the Nusantara initiative are distributed evenly across society. Addressing concerns of affordability, accessibility, and inclusivity in housing, services, and employment opportunities is part of this. Engaging local communities and marginalised groups in decision-making processes, as well as prioritising their needs and concerns, can contribute to social fairness and inclusivity.

Managing the financial implications and funding sources

The financial implications of the Nusantara project require careful management and consideration of funding sources. Key aspects include:

1. Cost-effectiveness: Balancing the costs of infrastructure development with long-term sustainability benefits is crucial. It is essential to prioritize investments that maximize the project's positive impacts while ensuring efficient resource allocation and cost-effectiveness. It is important to understand the need to contextualise in order to fit its intents and purpose for the Indonesian society.
2. Diverse funding sources: To sustainably support the project, a varied range of financing sources should be considered. Public-private partnerships, foreign development aid, green finance methods, and revenue-generating approaches such as user fees and taxes may all be included. A planned and diverse funding approach can lessen reliance on a single source and increase the financial sustainability of the project. It is also critical to find the right structure and the agreed-upon OKRs for ease of management, control and rectification. 

Ensuring inclusive governance and stakeholder participation

Inclusive governance and meaningful stakeholder participation are vital to the success of the Nusantara project. This involves:

1. Decision-making transparency: Transparent decision-making processes are required, as are clear norms, regulations, and accountability measures. This guarantees that the advantages and costs of the project are spread evenly and that the interests of all stakeholders, including local populations, are taken into account. Strong governance and digitalisation can help to ensure transparent and timely dissemination of information, results and judgements. 
2. Stakeholder engagement: Involving stakeholders throughout the project, from planning through execution and monitoring, promotes ownership and inclusive decision-making. Discussions, consultations, and participatory processes should include local communities, civil society organisations, and relevant government authorities. It is useful to keep reiterating that sustainability is an iterative process and will require coordinate collaboration with all stakeholders to make it work. Hence, the ability to communicate and motivate others to work towards shared goals while celebrating difference is a mindset that is valued.

By addressing potential problems, incorporating feedback, and encouraging inclusive governance, the Nusantara project may increase its effect, overcome criticism, and accomplish its sustainability goals. Continuous monitoring, assessment, and adaptive management practices can assure the project's long-term success and contribute to the larger sustainability agenda in Indonesia and beyond.

Major projects types at Nusantara

Key infrastructure projects and their significance

The Nusantara project encompasses a range of key infrastructure projects that contribute to the overall development and sustainability objectives. Some notable examples include:

1. Integrated transportation system: The creation of an integrated transportation system, which includes highways, public transportation networks, and pedestrian-friendly infrastructure, aims to improve connectivity, reduce traffic congestion, and encourage sustainable mobility options. This can result in increased accessibility, lower greenhouse gas emissions, and a higher quality of life for residents.
2. Renewable energy installations: To promote clean and sustainable energy sources, the Nusantara project emphasises the integration of renewable energy installations. This could include solar power plants, wind turbines, and other novel technology for producing electricity in an environmentally beneficial manner. By reducing dependency on fossil fuels, the project helps to mitigate climate change and accelerate the transition to a low-carbon economy. The possibilities of creating a green hydrogen hub and the development of storage banks or virtual power plants (VPPs) with the HVDC grids are logical additions to boost the sustainable energy credentials of the new capital. 
3. Green building and sustainable housing: Green building and sustainable housing are important to Nusantara. This entails combining energy-efficient architecture, using environmentally friendly materials, and employing smart technology to optimise resource utilisation. Sustainable housing practices reduce energy usage, trash generation, and produce healthier and more comfortable living situations. Nusantara is also based on the 10-minute city concept where all amenities and services are within a compact 10 minute reach of residents. The use of IoT and other monitoring devices will also provide the Nusantara municipality with the ESG data required to forecast, model and use data analytics to enhance energy and resource use of the new city. Such data can also serve as a model for other cities to study and/or emulate in the near future. 

Flagship programs and sustainable initiatives

The Nusantara project in Indonesia is expected to include several flagship programs and sustainable initiatives that showcase the commitment to sustainability and address pressing environmental and social challenges. These initiatives include:

1. Water management and conservation: The project focuses on long-term water management practices in order to secure adequate water supply, reduce water waste, and improve water quality. This could include the construction of water treatment and recycling facilities, rainfall harvesting systems, and public awareness campaigns promoting responsible water use. This would also include the conservation of critical mangrove areas where it is critical for the region’s blue carbon ecosystem to thrive to continue its role in blue carbon sequestration. 
2. Waste management and recycling: Nusantara employs effective waste management systems to solve the difficulties of waste generation and disposal. Establishing waste segregation practices, promoting recycling and composting, and building waste-to-energy plants are all part of this. The project contributes to resource conservation and environmental preservation by minimising garbage going to landfills and promoting a circular economy. In order to reduce single-use plastic and the growing microplastics in the region, Indonesia will have to envision a model to reduce single-use plastic and encourage circularity in its economy. Nusantara can be a model to develop such circular ecosystems. 
3. Community empowerment and social inclusion: The Nusantara project values community empowerment and social inclusion. It funds programmes that improve local inhabitants' skills and capacities, stimulates entrepreneurship, and provide equitable opportunities to marginalised populations. These programmes seek to promote social cohesion, minimise inequities, and ensure that the project's benefits are distributed evenly among all members of the community. Nusantara can be a model city for modernity infused with sustainability, and an inspirational centrepiece for Indonesians to work together to propel the country towards being the 4th largest economy in the world by 2030 and beyond. 

By implementing key infrastructure projects, and pursuing flagship programs and sustainable initiatives, the Nusantara project in Indonesia demonstrates its commitment to holistic development, environmental stewardship, and social progress. These efforts contribute to the broader global sustainability agenda and position Nusantara as a model for sustainable urban development.

Conclusion: call to action for sustainable investment and collaboration

Urging ASEAN member countries to prioritize sustainable development

The Nusantara initiative in Indonesia exemplifies the significance of prioritising sustainable development within the ASEAN. It is critical that ASEAN member countries recognise the critical need to solve environmental concerns, promote inclusive growth, and improve citizens' well-being. We may encourage ASEAN countries to integrate their development plans and strategies with sustainable development goals by showcasing the Nusantara project's achievements and sustainability initiatives. This involves incorporating environmental concerns, social equality, and economic resilience into their national priorities.

Emphasizing the potential for ASEAN to serve as a living laboratory for sustainable urban solutions

The ASEAN can look at Nusantara as a once-in-a-lifetime chance to act as a living laboratory for the development and implementation of sustainable urban solutions. The Nusantara project demonstrates cutting-edge methods for urban design, renewable energy integration, waste management, and community interaction. We can encourage other countries and cities to adopt comparable sustainable practices by emphasising ASEAN's potential as a forum for information sharing, collaboration, and learning. This can help to scale up initiatives for sustainable development and replicate successful models across the area.

Possible future collaborations or innovations to enhance Nusantara's development

As Nusantara evolves and expands, there are numerous opportunities for future collaborations and innovations that can improve its development and sustainability. These may include:

1. Cross-sector partnerships: To utilise experience, resources, and money, Nusantara can explore collaborations with international organisations, commercial sector companies, research institutes, and civil society organisations. Collaborations might focus on technical innovation, sustainable finance, capacity building, and information sharing, among other things.
2. Research and development: Encouraging research and development activities inside Nusantara can result in the emergence of new ideas, technologies, and best practices. This can include developing research centres, innovation hubs, and incubators that stimulate collaboration between academics, industry, and government. The findings of the research can help to guide evidence-based decision-making and contribute to continual advances in sustainable development practices.
3. International exchange programmes: By facilitating international exchange programmes and study tours, policymakers, urban planners, and practitioners from around the world can visit Nusantara and learn from its experiences. These programmes can encourage discourse, network building, and the replication of successful solutions in other urban areas.
4. Scaling up sustainable initiatives: Nusantara can act as a catalyst for scaling up sustainable activities throughout Indonesia and the ASEAN region. Nusantara can inspire other cities and countries to take similar techniques and replicate successful projects by aggressively sharing its knowledge, experiences, and lessons learned. This can contribute to a greater push towards sustainability in the region.

The Nusantara project in Indonesia illustrates the transforming power of sustainable development and offers vital lessons for other countries and areas. We can generate a worldwide call to action for sustainable investment and collaboration by pressing ASEAN member countries to prioritise sustainability, highlighting the region's potential as a living laboratory for sustainable urban solutions, and exploring future collaborations and innovations. We can all work together to create a more sustainable and resilient future.