Abstract
While the focus of this study is on the impact of relocating of Indonesia’s capital from Java to Eastern Kalimantan on shipping and trade, the paper also examines port reforms in Indonesia to
enhance her maritime aspirations via its ‘Global Maritime Fulcrum’ (GMF) policy. The discussion centres not only on the port of Tanjung Priok but also on the enhancement of ports, shipping, and trade in the Eastern sector of Indonesia, an area generally neglected by policy makers in the past. The study suggests that the importance of Tanjung Priok will remain unchanged and the demand on land use in the vicinity of the port will continue. The study suggests that the new capital city will be a catalyst to enhance the process on inter-regional connectivity and thereby improve the interactions of economy and trade within the Indonesian archipelago. The development of the new city will have a positive impact on ports and other maritime logistics infrastructure in the adjacent areas off Sabah, a state in Malaysia. However, the study does not examine the likely impact of relocating to Nusantara on regional security. We also reckon that besides human resources and sustainable funding, a strong political leadership is crucial to realize the dreams of the planners and policy makers.
