Indonesia's President Joko "Jokowi" Widodo is forging ahead with a bold plan to move the nation's capital city to the island of Borneo, in what opponents fear will merely repeat the "disaster" of Jakarta.

Key points: East Kalimantan on Borneo could be Indonesia's new capital

East Kalimantan on Borneo could be Indonesia's new capital The Government is seeking a new location for the capital due to problems in Jakarta

The Government is seeking a new location for the capital due to problems in Jakarta The city has pollution issues and is prone to blackouts and earthquakes

The current capital, a mega-city of some 30 million people on the island of Java, is heavily polluted, traffic-clogged and prone to floods and earthquakes.

Much of the city is also sinking at an alarming rate and predicted to face serious water shortages by 2040.

In the past fortnight, Jakarta has faced an air pollution crisis, a protracted city-wide blackout and an earthquake.

Jakarta is beset by problems with infrastructure, pollution and earthquakes. ( Reuters: Beawiharta )

Indonesian Borneo, where the Government is promising to build a "smart, green, beautiful and sustainable" capital, is geologically stable and relatively untouched.

Environmental groups say the area has large swathes of forest habitat crucial to orangutans and other endangered species.

"This is a conservation area for animal rehabilitation, like the honey bear," Yohana Tiko, the executive director of the East Kalimantan branch of Walhi, said.

Environmentalists such as Yohana Tiko fear moving the capital to Kalimantan will destroy animal habitats. ( ABC News: Phil Hemingway )

She fears the development associated with building a new capital city from scratch will further degrade local waterways, which are already polluted by coal mines and palm oil plantations — many of which are illegal.

"When the management of water is disturbed, floods will occur during the rainy season and drought during dry season. And there'll be landslides as well," she said.

"We don't want the new capital to end up just moving [Jakarta's] problems and disasters to East Kalimantan."

An Indonesian capital inspired by Canberra?

The project is expected to cost at least $44 billion, much of it funded by private investment according to Indonesia's Planning Minister Bambang Brodjonegoro.

He said construction would begin in 2021, with the first residents expected to move to the site in 2024 — the final year of Mr Widodo's second term.

"[The President] would like to use his whole second term to realise this idea of a new capital," Mr Brodjonegoro told the ABC.

Planners will also look to Australia for inspiration on the design of the city.

"We would like to see your capital Canberra as one of the references … many people praise Canberra for the design," he said.

Mr Brodjonegoro said international embassies currently in Jakarta would also be expected to relocate, which could cause headaches in Canberra.

Australia's $415 million embassy complex, the largest ever built by the federal government, was only opened in 2016.

It is an ambitious but risky project, according to John McCarthy, an expert on land use in Kalimantan at the Australian National University Crawford School.

"We can see many reasons for supporting or for opposing the move. Governments, however, need to take the long-term view and leaders with vision have the courage to make the call," Associate Professor McCarthy said.

Government seeks a fire-free region for its new capital

The province of East Kalimantan is firming as favourite among the locations being considered by Mr Widodo's Government, ahead of an expected announcement next week.

East Kalimantan on the Indonesian part of Borneo is considered the frontrunner to be the new capital. ( ABC News: Phil Hemingway )

It is the province that best fits the criteria laid out by Mr Brodjonegoro.

"We are looking for the area that has lowest risk of forest fires," he said.

The Government wants to pick a location that is close to existing infrastructure.

"We are thinking not to build new airports or seaports. Rather, we prefer to use the existing ones or expand the existing ones," the Minister said.

South Kalimantan and Central Kalimantan are also being considered, but they are both prone to forest fires and are far away from other large cities.

On the other hand, East Kalimantan has two major cities — Balikpapan and Samarinda — which each have sizable seaports and airports.

The city of Balikpapan is close to the site of the potential new capital of Indonesia. ( ABC News: Phil Hemingway )

A four-lane highway to connect the two cities is nearing completion.

When the ABC pointed out to the Planning Minister that East Kalimantan seemed to fit the relevant criteria, Mr Brodjonegoro offered a wry smile.

"Well, that's your assessment and it's a good assessment, but of course we have to see which location the President is going to pick," he said.

East Kalimantan's Governor Isran Noor told ABC he was "80 per cent confident" his province would be successful in its bid to host the capital.

"Judging from my meeting with President Jokowi yesterday, my feeling is that East Kalimantan [will be chosen]," he said.

Powerful Indonesians set for huge payday

The ABC understands several of Indonesia's most influential political figures have significant land and business interests in the area.

They could stand to reap major financial rewards if the project goes ahead.

Several rich and powerful Indonesians own vast swathes of land in East Kalimantan. ( ABC News: Phil Hemingway )

Hashim Djojohadikusumo, the brother of failed presidential candidate Prabowo Subianto, owns land there.

He told the ABC he owned 173,000 hectares of forest concessions and 447 hectares of industrial and commercial land about 50 kilometres from Bukit Suharto.

"Obviously, I would welcome the choice of Bukit [Suharto]," he told ABC via text message.

His brother, who refused to accept his election defeat this year and urged his followers to take to the streets in protest has, in recent weeks, mended relations with Mr Widodo during staged events.

After a bruising election in April, the President and his rival Prabowo Subianto have put their differences aside. ( Reuters: Wahyu Putro )

The ABC understands Indonesia's Coordinating Maritime Affairs Minister Luhut Binsar Panjaitan, one of the most powerful figures in Mr Widodo's Cabinet, also has significant energy interests in the region.

In February this year he reportedly confirmed his ownership of a 6,000-hectare coal mine in East Kalimantan.

Locals brace for quiet community to be transformed

Local residents have largely welcomed the prospect of the new development, but some, like Suparudin, who uses just one name, are hesitant.

"I'm 50-50, but I'll just go along with it," he said.

"Right now this regency is safe, but if the capital is moved here, I don't know. As we know, the capital has many [criminals]."

Muksina said building a new Indonesian capital in her community would make it more lively. ( ABC News: Phil Hemingway )

Slowly grating cassava on the balcony of her home nearby, an elderly woman named Muksina welcomed the prospect of the new development.

"I'm happy," she mumbled shyly.

As crickets chirp and roosters pecked at piles of junk on the ground at her feet, she continued.

"The place will become more lively," she said.

Dulbari is excited at the prospect of Indonesia's capital coming to his quiet home in Kalimantan. ( ABC News: Phil Hemingway )

Her husband, Dulbari, a rubber plantation farmer, sitting on a heavily worn couch was even more emphatic.

"I am beyond happy. When many people come together, the benefits will flow. Otherwise I'll just have to hang out with the monkeys," he said.

