Indonesia Needs More Than One New Capital. It Needs Six New Master-Planned Cities.
By Jamie McIntyre, Founder of LUX Property Group and Chief Editor of the Australian National Review
Indonesia stands at one of the most exciting moments in its modern history.
The construction of Nusantara, Indonesia’s new capital city, represents far more than the relocation of government offices. It demonstrates what is possible when long-term planning replaces decades of unstructured urban growth.
Following my recent Australian National Review special report from Nusantara, which received widespread attention across Indonesian media, one conclusion became increasingly clear: Indonesia should not stop with one new master-planned city.
It should build at least six.
As Founder of LUX Property Group, our company remains committed to completing our current projects across Bali before expanding our primary development focus elsewhere in Indonesia. Bali has been an extraordinary success story and will continue to be one of the world’s premier tourism destinations.
However, success creates its own challenges.
Bali is reaching practical limits on future expansion. Demand from international visitors and investors continues to accelerate, yet the island deliberately restricts high-rise construction to preserve its unique culture and landscape. This policy has protected Bali’s character and should be respected.
The result, however, is simple economics.
More people want to live, invest and holiday in Bali than the island can comfortably accommodate.
Road congestion continues to worsen, land becomes increasingly scarce, and property prices continue rising. While these trends benefit many existing landowners and businesses, they also highlight the need for Indonesia to create new destinations rather than expecting Bali to absorb unlimited future growth.
With a national population approaching 280 million people and the greater Jakarta metropolitan region now home to approximately 41.9 million people, Indonesia has both the scale and the economic potential to support multiple world-class master-planned cities.
Nusantara is the first.
LUX Property Group believes Indonesia should now begin planning at least four additional strategically located cities, each designed to eventually accommodate between 1.5 and 2 million residents while serving as regional economic hubs.
Our own planned mixed-use development in South Lombok, Nesara Bay City, which is currently progressing through final planning approvals expected later this year, represents one example of how carefully planned communities can support tourism, business, education, healthcare and lifestyle in a sustainable way.
Rather than allowing cities to evolve without long-term planning, Indonesia has an opportunity to create communities built around modern infrastructure from day one.
These cities should feature:
• Wide boulevards and efficient road networks.
• Extensive parks and green corridors.
• Reliable public transport.
• Smart city technology.
• Sustainable energy systems.
• Water recycling infrastructure.
• Mixed residential, commercial and tourism precincts.
• Convention and exhibition facilities.
• Universities and research centres.
• International hospitals.
• Walkable town centres.
• Protected natural environments.
Indonesia’s geography provides numerous opportunities to distribute future population growth more evenly throughout the archipelago rather than concentrating economic activity into only a handful of metropolitan areas.
Lombok is well positioned to absorb substantial tourism growth as Bali approaches capacity.
Other strategically located regions throughout Indonesia also possess the land, natural beauty and economic potential to support carefully planned cities that could become engines of national growth for generations.
Such developments would create hundreds of thousands of jobs during construction and operation while stimulating tourism, manufacturing, education, technology, logistics and international investment.
They would also help reduce pressure on Jakarta while creating entirely new centres of economic activity across the country.
LUX Property Group is already in discussions with representatives of the Indonesian Government regarding our proposal to develop a convention centre and eco-resort within the Nusantara region.
We believe the knowledge gained through projects such as Nusantara and our own master-planned developments can contribute meaningfully to Indonesia’s broader vision for balanced national growth.
Indonesia is forecast by many economists to become one of the world’s largest economies over coming decades.
The nation possesses abundant natural resources, a young and growing population, strategic maritime trade routes, and one of the strongest long-term growth stories in Asia.
Now is the time to think beyond simply building more buildings.
It is time to build better cities.
Cities designed not only for today’s population, but for generations yet to come.
Indonesia has already shown the world what is possible with Nusantara.
The next chapter could see a network of modern, sustainable, master-planned cities transforming the nation while preserving the unique character of places like Bali that made Indonesia famous in the first place.
LUX Property Group stands ready to contribute its experience, investment and long-term commitment to help make that vision a reality.
