Indonesia's future capital, to be built on the island of Borneo, will be called Nusantara.

This was announced by Minister for National Development Suharso Monoarfa on Monday.

Translated, the name, which was also used in the past for the island nation as a whole, means "archipelago".

The decision had previously been communicated to him by President Joko Widodo, the minister said according to media reports.

The name is internationally known, simple and appropriate, said Monoarfa: "I think that we will all agree with the name Nusantara."

The president announced the construction of the new capital after his re-election in 2019. The project aims to relieve the 30 million metropolitan region of Jakarta, which suffers from air pollution, permanent traffic jams and floods. The President also expects impulses for the economy, which has been hit by the pandemic. He sees the move as a prestige project that will secure him a place in the history of the island nation. Despite delays caused by Corona, construction is scheduled to begin this year. The move of the first government offices is planned for 2024.

According to plans, the project will cost around 33 billion dollars.

An area in East Kalimantan has been designated as the location for the new center of government and administration.

This province is less affected by natural disasters such as earthquakes, volcanic eruptions and tsunamis.

It also marks the geographical center of the state with 17,000 islands.