Commentaries
Keywords: Nusantara, Indonesia-India Ties, Historical Linkages, Bilateral Cooperation
Date: 28th January 2024
Indonesia’s outgoing President, Joko Widodo, had initiated an ambitious project to relocate the nation’s capital from Jakarta to East Kalimantan, unveiling the new city as Nusantara. This venture entails substantial financial commitments and budget allocations. As the country gears up to welcome Prabowo Subianto as the new president following the presidential and legislative elections on February 14, 2024, it is likely that the efforts to establish the new capital will remain.
Understanding Project Nusantara is also important from an Indian perspective. As India and Indonesia celebrate 75 years of diplomatic partnership in 2024, the historical significance of Nusantara and its connections to ancient India may provide an additional avenue for enhancing the relationship by bridging the modern and civilizational aspects of their longstanding connection.
Nusantara is situated on the east coast of Borneo Island, specifically in East Kalimantan province. The term “Nusantara” is derived from the old Javanese, “Nusa”, meaning island, while “antara”, signifying in-between or in the middle, is derived from Sanskrit. This term encompasses the idea of outer islands and implies an island outside the central landmass of the country. Nusantara, in its metaphoric sense, is possibly situated between the Indian and Pacific Oceans.
The 14th century manuscripts such as Pararaton and Nagarakretagama shed light on the significance of Nusantara. Gaja Madah, one of the Prime Ministers of the Majapahit Kingdom, famously vowed not to eat any spices until he conquered Nusantara as part of the kingdom’s expansion. Majapahit was the last Hindu Kingdom in Indonesia between 1293 AD and 1527 AD. In ancient Indonesian literature and culture, Nusantara was a unifying concept for the archipelago transcending geographical distances and differences.
The Indonesian government plans to replace Jakarta with Nusantara, whose coastal border spans from Makassar Strait to Balikpapan Bay, and it reflects Indonesia’s aspiration for a national and cultural identity that harmonizes ancient civilizational concepts with the modern necessity of a state-of-the-art capital. Some see this shift as Indonesia’s contribution to Southeast Asia’s regional cooperation and identity, while celebrating diversity.
Under the leadership of outgoing President Joko Widodo, earnest endeavors to shift Indonesia’s capital are driven by administrative, developmental, and environmental considerations. First, the move aims to alleviate Jakarta’s challenges arising from its growing population. Second, Indonesia needs a location for the capital that is less vulnerable to environmental disasters.
Third, this move would also address the developmental disparities between Java and other islands. At present, the Indonesian part of Borneo contributes only 8 percent to the national GDP compared to 56 percent contribution made by Java. Fourth, it aligns with Indonesia’s ambition to be acknowledged as an archipelagic nation. Lastly, the plan involves establishing a smart capital city, necessitating a fresh location. President Joko Widodo envisions Nusantara as “a new center of economic gravity” and a place to “embark on the future green economy, future technology, and future knowledge.”
Beyond its administrative and geographic importance, Nusantara carries broader civilizational and neighbourly connections. Borneo, also known as Kalimantan, is divided among Brunei Darussalam, Malaysia (western side), and Indonesia (eastern side), with East Kalimantan selected as the site for the new capital city.
Turning to history, records showed that ancient Indian traders, between 500 AD and 1300 AD, travelled to Borneo and referred to it as Borneo Suvarnabhumi (the land of gold) and Karpuradvipa (Camphor Island). East Kalimantan, including the region chosen for Nusantara, had historical connections with Hindu kingdoms. It housed an ancient Hindu Kingdom, Kutai Martadipura in the 4th Century BCE, where King Mulavarman’s inscriptions detail significant contributions to the Brahman community.
Majapahit kingdom’s historical ambition to conquer all of Nusantara is a known fact. Majapahit Empire spanned from Java, Sumatra, Malay Peninsula and Kalimantan and like most ancient Hindu-Buddhist kingdoms, it also adopted the mandala system for administration and governance. This historical context is relevant in understanding contemporary foreign relations, particularly in countries like India and Indonesia.
Despite the relative maritime distance between the Indian islands (Andaman and Nicobar Islands) and Nusantara compared to Sumatra and Java, this should not impede Indian business interests. An Indian Business Forum Delegation had engaged in high-level B2B interactions in East Kalimantan in 2014. India’s Apollo hospital chain collaborates with Indonesia’s Mayapada Hospital Group for a healthcare facility in the new capital.
As India and Indonesia mark the 75th anniversary of their diplomatic ties, this provides an apt moment to explore new avenues for collaboration and reinforce existing institutional frameworks to elevate their relationship. Potential sectors for cooperation in Nusantara include digitalization and renewable energy, where Indonesia may seek support from successful neighbours like India.
Beyond historical connections, both nations share common values and ethical principles in the international arena. As aspiring responsible global maritime players, India and Indonesia are committed to upholding their respective domestic principles and sovereignty. Both countries exhibit mutual interests in addressing non-traditional security issues.
Bilaterally, they have instituted various mechanisms to collaboratively tackle issues of common interest. These include the Joint Commission Meeting, Foreign Office Consultation, India-Indonesia Security Dialogue, Defence Ministers’ Dialogue, Consular Dialogue, Joint Working Group on Counter-Terrorism, Joint Working Group on Narcotics, Biennial Trade Ministers’ Forum, Joint Task Force on Andaman & Nicobar Islands-Aceh Connectivity, and India-Indonesia Infrastructure Forum, reflecting the depth of their partnership.
The bilateral trade figures for 2022-23 demonstrate a robust relationship, with the total bilateral trade reaching USD 38.85 billion. This positive trajectory underscores the significance of preserving historical ties while embracing modernity. The collaborative efforts between New Delhi and Jakarta, coupled with their shared vision for the future, are expected to further strengthen the links between India and Indonesia in the years to come.
In this context, Nusantara’s role as a hub for economic, technological, and educational advancements with a commitment to sustainability signifies not just a shift in administrative capital but a transformative endeavour with global implications. As demonstrated by ongoing collaborations, Nusantara presents an avenue for enhanced cooperation with countries like India playing a vital role in this shared journey toward progress and prosperity.
Sampa Kundu is a Consultant at ASEAN-India Centre (AIC) at Research and Information System for Developing Countries (RIS), New Delhi.
Disclaimer: The views expressed above and the information available are those of the author/s and can therefore in no way be taken to reflect the position of Asian Confluence
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