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Indonesia's capital has just been relocated from Jakarta to a site within the jungle of Kalimantan on Borneo island after parliament approved the bill. It will strengthen supply chains and place Indonesia "in a more strategic position in world trade routes, investment flows, and technological innovation."
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The biggest reason is environmental - Jakarta is over-crowded and heavily polluted. By building in a new capital with proper planning, it will have the infrastructure to support the large population. There will be less crowding and living conditions of the poor will improve. Mass transit projects such as train will also reduce pollution. The legal issues will be settled by the President and the lawmakers as they both support the move.