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Fishermen hope development of Indonesia's future capital Nusantara won't affect livelihoods

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Channel News Asia - December 19, 2022

Saifulbahri Ismail, East Kalimantan – Fisherman Sakirang gets his catch from the waters around Balikpapan Bay, the gateway to Indonesia's future capital city Nusantara some 70km away.

In the past, the 53-year-old would be able to haul 50kg of fish on a good day. But now, he is lucky to even get half that amount.

Construction of the new capital city is moving into high gear, but concerns have already been raised about the mega project's impact on surrounding areas.

For Mr Sakirang, his hope is that the shifting of the nation's capital from Jakarta to Nusantara will not affect his livelihood.

Traditional fishermen have relied on the Balikpapan Bay for their livelihoods since the 1970s. But over the years, their catch has been affected by the growth of many industries in the area.

For instance, locals claim that barges carrying coal from Balikpapan to other islands where most coal-fired power plants are located, particularly Java, cause pollution. They add that the sheer size of the vessels pose a danger to small fishing boats.

"There are many ships passing through. Some even hit us when we are out at sea," said Mr Sakirang. "The traditional fishing area is very narrow. One area has already been dominated by coal mining companies. We cannot go there anymore."

Economic windfall from capital city development

The economic windfall from the capital city development may not immediately lift the lives of everyone in the province, observers pointed out.

Social activists have urged authorities for a fairer economic distribution within Balikpapan Bay.

"The fishing area should be allocated to the fishermen. I see that the distribution of sea area is usually given first to the harbour, to the coal miners, and the fishermen get what's left," said Coastal Communities Working Group executive director Mappaselle.

"The area which has the most fishing potential should be given to the fishermen but it is always taken by other sectors."

Construction for the Nusantara capital city has started, and a total of 22 towers will be erected by January to house some 17,000 workers.

Environmental and social management

Authorities said the project, which will be completed in 2045, needs to take into account environmental and social governance.

"The majority of the development of the (Nusantara capital city) will need foreign investments," said Nusantara Capital City Authority secretary Jaka Santos.

"Large foreign investors will be attracted if the project has ESG – environmental and social governance – that is concerned about environmental and social management."

Meanwhile, in Sepaku district, located more than two hours' drive from Balikpapan, residents welcome the development of the new capital city.

The once sleepy district in Penajam Paser Utara regency, the administrative centre for Nusantara, has turned into a busy neighbourhood.

Indonesian Entrepreneurs Association (East Kalimantan) chairman Slamet Brotosiswoyo said: "(Micro, small and medium enterprises) have grown and thrived in Sepaku district. Markets selling the nine basic commodities are in high demand.

"Before this, there weren't any big projects in Sepaku. Now, workers from outside have spurred growth, especially in food catering and other aspects which support the lives of workers there."

Source: https://www.channelnewsasia.com/asia/development-indonesia-new-capital-nusantara-livelihoods-315435

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