Jakarta, originally built on a swamp, is sinking by up to 20 cm a year while the Java Sea has already risen by 8cm since the city was built in the 16th century. At the current rate, most of northern Jakarta will be underwater by 2050.
As the city cannot ultimately be saved as nature takes its inevitable course, the answer was simple: move the capital instead 2,000 km to the east to a new purpose-built home in East Kalimantan on the island of Borneo. The new coastal capital with plans for five satellite towns will occupy about 2,500 square kilometers, making it almost as large as Paris.
Construction has already begun, with plans to complete the initial phase by 2025, and start moving over inhabitants from the most threatened parts of Jakarta. A budget of USD 34 billion has been allocated to creating a ‘green city’ with plenty of open spaces, electric-based transport, and solar-powered housing.
However, it has also produced the equally inevitable sustainability issues of environmental damage in the new location, led by extensive deforestation. Borneo is one of the most biodiverse places on Earth and home to some of the last pristine tropical rainforests.
The initial phase of construction has already run into problems over future supplies of electricity and water. Hydroelectric power cannot generate enough to serve an influx of millions of people, so three new coal-fired power plants are planned. This comes at a time when the UN has called for coal to be phased out as an energy source to combat climate change.
Meanwhile, Indonesia was already the world’s largest exporter of thermal coal that is abundant on its archipelago of islands, and has issued 1,500 mining permits in East Kalimantan spanning more than 50,000 sq. km. – an area bigger than Belgium. This is set to exacerbate both the environmental destruction and the country’s contribution to global warming at the same time.
“Indonesia’s problems reflect how difficult it can be for many emerging economies to meet their most pressing and manifold challenges in a sustainable way,” says Max Schieler, author of the RobecoSAM Country Sustainability Ranking (CSR).
“Indeed, sustainable development consists of a complex and well-balanced relationship between economic growth, social progress and environmental conservation. Certainly, Indonesia’s socio-economic performance over the past two decades has been impressive, with millions of people lifted out of poverty, and per capita income doubled.”
“However, this economic success has come at a high environmental cost, as all the natural resource-based activities, such as agriculture, forestry, fishery and mining put severe pressure on ecosystems, reflected in Indonesia’s mediocre ranking (92 out of 150) for the environmental dimension in the CSR. This also indicates a need for the country to tackle these environmental pressures if it is to avoid putting its economic achievements and its population’s well-being at risk.”
The information contained on these pages is for marketing purposes and solely intended for Qualified Investors in accordance with the Swiss Collective Investment Schemes Act of 23 June 2006 (“CISA”) domiciled in Switzerland, Professional Clients in accordance with Annex II of the Markets in Financial Instruments Directive II (“MiFID II”) domiciled in the European Union und European Economic Area with a license to distribute / promote financial instruments in such capacity or herewith requesting respective information on products and services in their capacity as Professional Clients.
The Funds are domiciled in Luxembourg and The Netherlands. ACOLIN Fund Services AG, postal address: Affolternstrasse 56, 8050 Zürich, acts as the Swiss representative of the Fund(s). UBS Switzerland AG, Bahnhofstrasse 45, 8001 Zurich, postal address: Europastrasse 2, P.O. Box, CH-8152 Opfikon, acts as the Swiss paying agent. The prospectus, the Key Investor Information Documents (KIIDs), the articles of association, the annual and semi-annual reports of the Fund(s) may be obtained, on simple request and free of charge, at the office of the Swiss representative ACOLIN Fund Services AG. The prospectuses are also available via the website www.robeco.ch. Some funds about which information is shown on these pages may fall outside the scope of the Swiss Collective Investment Schemes Act of 26 June 2006 (“CISA”) and therefore do not (need to) have a license from or registration with the Swiss Financial Market Supervisory Authority (FINMA).
Some funds about which information is shown on this website may not be available in your domicile country. Please check the registration status in your respective domicile country. To view the RobecoSwitzerland Ltd. products that are registered/available in your country, please go to the respective Fund Selector, which can be found on this website and select your country of domicile.
Neither information nor any opinion expressed on this website constitutes a solicitation, an offer or a recommendation to buy, sell or dispose of any investment, to engage in any other transaction or to provide any investment advice or service. An investment in a Robeco Switzerland Ltd. product should only be made after reading the related legal documents such as management regulations, prospectuses, annual and semi-annual reports.