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IKN Can Increase Regional Economic and Agricultural Growth

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By : Andika )*

The public has high hopes for the National Capital City (IKN) of the Archipelago, especially in terms of accelerating equitable development throughout Indonesia. With this transfer, it is hoped that it will be able to encourage economic growth and the agricultural sector in the new area.

The transfer of IKN to East Kalimantan is one of the Indonesian government projects designed to reduce the burden on Jakarta. As is known, Jakarta is the center of government and business, facing various challenges such as population density, traffic jams, pollution and environmental degradation. By moving the capital city to a new location, it is hoped that there will be equal distribution of development and economy throughout Indonesia.

East Kalimantan has great economic potential. This region is rich in natural resources such as petroleum, natural gas and coal. Apart from that, East Kalimantan also has extensive and fertile land, which is suitable for the agricultural and plantation sectors. By moving IKN, the government plans to develop better infrastructure, which in turn will attract investment and create new jobs.

One of the key factors in economic development in this new area is infrastructure development. The government has planned various infrastructure projects such as roads, airports, ports and other public facilities. Good infrastructure will facilitate accessibility and mobility, which are important factors for economic growth. Apart from that, with adequate infrastructure, investors will be more interested in investing their capital in East Kalimantan.

The government has also invited various investors from both within and outside the country to participate in the development of IKN. It is hoped that this investment will create a positive domino effect, where the growth of other sectors such as housing, education and health will also increase.

East Kalimantan has great potential in the agricultural and plantation sectors. The large and fertile land makes this area very suitable for the development of various agricultural commodities such as rice, corn, palm oil and rubber. With the existence of IKN, the government plans to increase agricultural productivity through various programs and assistance to farmers.

The President of the Republic of Indonesia, Joko Widodo, said that IKN’s strategic role is in driving a new wave of economic growth. This perspective is in line with a broader vision to make IKN a model of sustainable urban development. IKN is a point of new economic growth and economic transformation is also taking place, especially those related to the green economy.

In connection with the move of IKN from Jakarta to the planned city of Nusantara which is located on the east coast of Kalimantan Island, the central government is preparing a number of areas as food buffers, one of which is East Kotawaringin (Kotim) which is in Central Kalimantan.

The Regent of Kotim, Halikinnor, said that his party was ready if Kotim was chosen as the IKN food buffer. They have even prepared a master plan regarding this matter which will be proposed to the Ministry of Agriculture, because the agricultural land area in Kotim is sufficient to support IKN food. 

One of the efforts made is to provide training and modern agricultural technology to local farmers. The use of technology such as drip irrigation, organic fertilizer and agricultural mechanization will increase crop yields and production efficiency. Apart from that, the government also plans to build an agricultural research and development center in this area, which will become a center for innovation and development of agricultural technology

The main director of Bankaltimtara, Muhammad Yamin, said that his party supports quality and sustainable regional economic growth as well as financial inclusion in the new capital city.

It is hoped that the move of IKN to East Kalimantan will have a positive impact on the local community. With infrastructure development and investment, new jobs will be created, which will reduce the unemployment rate in the area. Apart from that, improving the agricultural and plantation sectors will also increase the income of local farmers.

With infrastructure development, access to public facilities such as education, health and transportation will increase. This will improve the quality of life of local communities. Children will have access to better schools, people will get easier health services, and mobility will increase with better transportation.

The government also plans to involve local communities in various development projects. Community empowerment programs will be carried out to improve the skills and knowledge of local communities, so that they can actively participate in the development of their region. Training such as small and medium enterprise management, entrepreneurship and technical skills will be provided to the community.

Although the transfer of IKN has many positive potentials, there are also various challenges that must be faced. One of the main challenges is environmental protection. East Kalimantan has a rich and sensitive ecosystem, so development must be carried out by paying attention to aspects of environmental sustainability. The government remains committed to carrying out environmentally friendly development by implementing green technology and paying attention to the environmental impact of each project.

Apart from that, another challenge is ensuring that the benefits of relocating IKN can be felt by all levels of society, especially local communities. Therefore, the government continues to work together with various parties, including the private sector and civil society, to ensure inclusive and equitable development.

Moving IKN to East Kalimantan is a strategic step that can increase economic growth and the agricultural sector in the area. With good infrastructure development, increased investment and development of the agricultural sector, East Kalimantan has the potential to become a new economic center in Indonesia. It is hoped that the positive impact of this relocation can be felt by the entire community, especially local communities, through improving the quality of life and empowering the community. Even though there are various challenges, with good cooperation between the government, the private sector and the community, the transfer of IKN can be a historical milestone in Indonesia’s more advanced and equitable development.

)* Student majoring in economics at a private university in Yogyakarta

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