It's an idea that has been discussed since the foundation of modern Indonesia in the 1940s, but it's never been acted upon.
Now, Indonesia's Planning Minister says the President has taken the first steps to move Indonesia's capital from Jakarta.
Joko Widodo casting his ballot on April 17. Source: AAP
Indonesian President Joko Widodo said it's been a long time coming.
"The idea to move the capital city appeared long ago since [the first president] Sukarno's era. In fact, the idea always comes up during each and every Presidential term," he said.
"It has never been decided or discussed in a planned and mature manner."
Is it necessary?
The country's Planning Minister, Bambang Brodjonegoro, said the annual economic loss due to traffic congestion in Jakarta is some 100 trillion rupiah ($10 billion).
It's also prone to flooding and is rapidly sinking because of uncontrolled ground-water extraction.
Rush hour traffic in Jakarta. Source: AAP
The director of the Lowy Institute's Southeast Asia Project, Ben Bland, told SBS News these are all major issues for any capital city.
"Jakarta is the heart of the Indonesian economy and it's easy for people, goods, to spend hours in traffic jams every day, so it makes it hard for people to do business, it makes it hard for people to trade," Mr Bland said.
"It also slows down the business of government because you have all the commercial activity and government activity taking place in the same location."
Pushing forward
At a special cabinet meeting on Monday, government officials decided on a plan that they say will span 10 years.
Experts say that its the most serious of steps a president has taken to move the capital.
Three options were discussed, including moving to a location near Jakarta or staying put and relocating all government buildings to a special zone around the presidential palace.
Indonesian President Joko Widodo at Merdeka Palace. Source: AAP
But ultimately, the President decided that moving the capital outside of Indonesia's most populous island, Java, was the best choice.
"Moving the capital involves great details of planning in choosing a location based on a geopolitical and geostrategic plan including the readiness of funds and infrastructure... I believe if we plan it well, we will accomplished this great idea," Mr Widodo said.
Professor of Global Urban Politics at the University of Melbourne Michele Acuto agreed.
"Ten years is extremely optimistic," Professor Acuto told SBS News.
"I guess the question is, is it functional? Can it be successful and is it a good expense of national funds in the current context?"
The site for a possible new capital hasn't been announced, but Palangkaraya on the island of Borneo has been rumored as the location.
The Lowy Institute's Ben Bland said Palangkaraya would be feasible because it is "relatively free of natural disasters... it already has an existing seaport and airport so it has those transportation links... and they're looking for somewhere that's towards the centre of Indonesia and outside Java."
And there are plenty of countries Indonesia could turn to for modelling, as Mr Bland explained to SBS News.
"In the past most recently in Asia we've seen Myanmar move from Yangon to Naypyidaw," he said.
"Kazakhstan's done it, Brazil. Obviously Australia has a political capital separate from the main business centre."
Post-elections
Mr Widodo has made diversifying and expanding Indonesia a key policy of his, particularly leading into recent elections in which he has since declared victory for a second term.
Mr Bland at the Lowy Institute said any such move would meet Mr Widodo's promise to spread economic development more evenly outside Java.
He said that it would create a great legacy for Mr Widodo.
But many people in Indonesia won't be convinced by the talk, considering it has been discussed in the past, he said.
And he also has concerns for the future of Jakarta in that changing Jakarta's capital status won't solve any issues for the 30 million people who reside in and around Jakarta.
"It will make it easier for the bureaucrats and the politicians who move to a new planned city, but I think the commercial activity is going to stay in Jakarta," Mr Bland explained.
"Without more public transport, flood mitigation and more environmental measures, you're not really going to tackle Jakarta's problems just by moving the political capital to a new city."
What will it cost?
It's not yet clear how much it will all cost, but Professor Acuto at Melbourne University estimated it won't be cheap.
"You could lean towards the billions."
"It's a very large investment... at the bare bones of the infrastructure... and then there's probably a whole large investment in the social infrastructure, from the cafes to the schools to green spaces."
The planning minister has ordered the finance ministry to come up with a financing scheme that would allow private investment.
According to Mr Bland, that provides opportunity for Australia to be involved in the planning and construction phase. But he conceded any such project would probably be for state-owned and private Indonesian companies and Indonesian companies.
