The debate on relocating Indonesia’s national capital from Jakarta stems from critical issues such as overpopulation, social inequality, environmental degradation, and natural disaster risks. These challenges highlight the need to reassess Jakarta’s viability as the nation’s administrative center. This study evaluates Indonesia’s readiness to address the complexities of relocation by analyzing Jakarta’s socio-economic, political, cultural, and geographical conditions. Using a systematic literature review (SLR) with a qualitative approach, the research explores key questions: Do Jakarta’s conditions necessitate relocation? What challenges might arise from the move? How prepared is Indonesia to tackle these challenges? The SLR process includes defining questions, sourcing literature from reputable databases, applying inclusion/exclusion criteria, and synthesizing data for analysis. Findings reveal Jakarta’s multifaceted challenges, including social disparities, environmental degradation, disaster risks, and governance issues, which emphasize the urgency of considering relocation. However, the study also identifies significant hurdles, such as high costs, logistical complexities, potential social conflicts, and environmental risks at the new capital site. Relocating the capital is a strategic and complex undertaking that requires meticulous planning. Indonesia must weigh Jakarta’s current issues, address potential relocation challenges, and ensure readiness for risk mitigation and sustainable development. Comprehensive and thoughtful planning is essential to achieve a successful and balanced transition.