Indonesian lawmakers on Tuesday passed a law on the relocation of the nation's capital to the island of Kalimantan, which the country shares borders with Malaysia and Brunei, from the most populated island of Java, Xinhua reports.

The move is a step forward in one of the most ambitious projects initiated by the country's President Joko Widodo.

Some former presidents have floated ideas of relocating the capital city in the past. The president, widely known as Jokowi, three years ago vowed to relocate the capital city to the province of East Kalimantan due to a number of issues, including high population density and land subsidence in Jakarta, home to more than 10 million people.

Nusantara, which the new capital is called, will be built in two districts in East Kalimantan -- Penajam Paser Utara and Kutai Kartanegara. It is set to occupy about 256,000 hectares of land.

The name of Nusantara, which can be translated as an archipelago in English, was chosen by President Jokowi, Minister for National Development Planning Suharso Monoarfa has said.

Indonesia, the world's fourth most populous country, is home to some 270 million people, consisting of about 17,000 islands.

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