An official said Tuesday; the Indonesian parliament has passed a plan to transfer Jakarta's capital to Borneo's East Kalimantan region.

"The new capital city serves a vital function and serves as a symbol of national identity in addition to serving as a new economic center," Planning Minister Suharso Monoarfa stated in parliament following the bill's passage.

The new capital, according to Monoarfa, would be called Nusantara, a Javanese word for the Indonesian archipelago chosen by Indonesian President Joko Widodo.

According to the new law, the new capital's projected area is 256,142.74 hectares (632,941 acres).

The legislation establishes a legal framework for the 489 trillion rupiahs ($34 billion) project before the 2024 presidential election.

Jakarta is one of the world's most densely inhabited cities, with over ten million.

The metropolis is prone to flooding and is sinking due to subsidence caused by millions of citizens who rely on groundwater.

Jakarta became the de facto capital city of the Republic of Indonesia on Aug. 17, 1945, following the country's declaration of independence.