As Indonesia celebrated its Independence Day on August 17, 2024, the world watched with anticipation as President Jokowi inaugurated Nusantara, the nation’s new capital in East Kalimantan. This ambitious project, poised to become a global benchmark for sustainable urban planning, has captured international attention for its commitment to innovation across multiple sectors. Designed from scratch as a model of sustainability, intelligence, resilience, and inclusivity, Nusantara offers a unique opportunity for Indonesia to demonstrate its leadership in addressing the challenges of the 21st century.

Ambitious goals for a sustainable city

Nusantara’s vision revolves around a ‘green’ and ‘sustainable’ development, with ambitious renewable energy goals even exceeding national ones. While Indonesia targets its renewable energy share to reach 31% by 2030 and aims for net zero by 2060, Nusantara strives for 80-100% clean energy and net zero by 2045. Considering that the region is currently dominated by coal and gas power plants, Nusantara’s starting point for becoming one of the greenest cities in the world is no small feat.

Powering Nusantara: renewable energy potential

With a projected population of 1.5 million, Nusantara will require around 1,550 MW of electricity, with the first 200 MW already needed by 2030. According to research from the Ministry of Energy and Mineral Resources, this demand could be met entirely by renewable energy sources, particularly solar (65%) and hydroelectric (26%), as well as contributions from wind, biofuels, and other renewable alternatives. In East Kalimantan alone, the renewable energy potential is estimated at up to 20 GW. But what technologies fit the new capital best?

Harnessing sun and water

Recent research points to solar and hydroelectric power as the most viable options for Nusantara, aligning with the broader renewable energy outlook for Indonesia.

Among the intermittent energy sources, solar holds greater promise than wind. The area surrounding Nusantara is relatively flat, and the average wind speeds in East Kalimantan are low (around 4 m/s), making the region unsuitable for large-scale wind farm projects. Solar energy is instead a more feasible option, particularly if panels are installed on former mining sites, taking advantage of existing electricity distribution and transportation infrastructure. To further increase synergies, solar projects could also be prioritized on water bodies (floating solar) and agricultural land.

For baseload power, Nusantara will rely on hydroelectric energy, as Kalimantan is rich in water resources: East Kalimantan alone has 210 rivers stretching over 12,083 km, offering a strong foundation for both large and micro-hydropower projects.

But what does the current situation look like? Which projects are underway?

Current developments and challenges

Just 5 km from the capital, a 50 MW ground-based solar power plant (Figure 1) is being developed by Nusantara Sembcorp Solar Energy (NSSE), a joint venture between Nusantara Renewable (a subsidiary of PLN) and Singapore’s Sembcorp. Construction began in April 2023, with 10 MW already operational as of March 2024. The remaining capacity is expected to be completed by the end of 2024.

While solar appears more promising than wind in Kalimantan, a 70 MW onshore wind farm—known as the Tanah Laut project—is planned in the Southern part of the island. Currently in the permitting and pre-construction phase, it is expected to be fully operational by the end of 2025.

Moreover, plans are underway for five hydropower dams along the Kayan River in North Kalimantan, which could generate up to 9,000 MW. Construction is scheduled to begin in 2028, led by PT Kayan Hydro Energy (KHE), which is actively seeking investors.

Currently, the only renewable energy production in the area thus comes from the solar power plant near the capital, and its remaining construction is likely to be delayed. The delay of this solar power plant is not the only infrastructure setback; several key projects are yet to be finished, which in turn hampers foreign investment, expected to account for around 80% of the city’s overall budget.

Nusantara: A catalyst for change

Nusantara has become the focal point for bold energy targets that, even if not fully achieved, still provide direction, momentum, new standards and a sense of purpose. The news of Indonesia’s new capital has spread globally, placing the country in the spotlight for foreign financiers. With the world watching (and possibly investing), Nusantara has the chance to serve as a catalyst for Indonesia’s national energy transition as well as redefine what a sustainable, future-ready city can achieve.

About the writer:

Originally from Ticino, the Italian-speaking region of Switzerland, Valeria Renna is an Environmental Sciences graduate of ETH Zürich (2022). After gaining 1.5 years of experience in environmental impact assessments within rural-mountainous areas of Switzerland, she joined the Renewable Energy Skills Development (RESD) project team in Jakarta as a researcher.