The city of Palangkaraya has a unique and relatively short history, closely tied to the ambitious plan of Indonesia's first president, Sukarno. Unlike many ancient cities that grew from trading settlements, Palangkaraya was conceived and founded with a specific purpose — to become the country's new capital. Construction of the city began in 1957 on the site of the small village of Pahandut on the banks of the Kahayan River. The name "Palangkaraya" itself comes from the language of the local Dayak people and means "a sacred, great place," reflecting the high hopes placed on this project.
The key factors in the city's establishment were political will and geography. President Sukarno's idea was to move the capital from overcrowded Jakarta to the geographical centre of the Indonesian archipelago — the island of Kalimantan. This decision was driven by a desire for more balanced regional development and to reduce the dominance of the island of Java. Thus, Palangkaraya initially developed not as a trading or industrial hub, but as the administrative and political centre of the future.
From the very beginning, Palangkaraya developed as a well-planned city, which distinguishes it from many other cities in Indonesia to this day. Its initial architecture and infrastructure were designed with its capital status in mind. The early economy was based on government investment in construction and the development of natural resources in the surrounding tropical rainforests. Culturally, the city was formed at the intersection of the traditions of the indigenous Dayak population and the culture of migrants from other parts of Indonesia brought in to work on the capital project. Although the plan to move the capital was not fully realised at that time, it laid the foundation for Palangkaraya's development as an important administrative centre for the province of Central Kalimantan.