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IKN Development Government Efforts to Accelerate Economic Transformation

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The development of the Capital of the Archipelago (IKN) in East Kalimantan is one of the Government’s efforts to accelerate economic transformation in the country.

Deputy for Economic Affairs at the Ministry of National Development Planning/Bappenas, Amalia Adininggar Widyasanti, stated that the development of IKN in East Kalimantan would be able to change several things.

Mainly related to the economy in East Kalimantan, according to him, in the future it will turn into a value creation basis.

“In the future, East Kalimantan’s economy will be based on value creation and will become part of the IKN superhub. East Kalimantan has an important role in implementing Indonesia’s economic transformation strategy through the transfer of IKN,” he said.

Not only will it change the economic paradigm to one based on value creation, but there will also be six other strategies in carrying out economic transformation in the country.

The first strategy is to increase the competitiveness of human resources (HR).

Then the second thing is about economic productivity, the green economy, the digital economy to the integration of the domestic economy.

“We are rolling out six strategies for Indonesia’s economic transformation. First, competitive human resources. Second, the productivity of the economic sector. Third, the green economy. Fourth, the digital economy. Fifth, the integration of the domestic economy,” added Amalia.

Furthermore, the sixth strategy is to move IKN in East Kalimantan because the project is not just an effort to move the capital city.

“Sixth, the transfer of IKN. The transfer of IKN is not only the transfer of the government’s capital, but is part of Indonesia’s great effort to transform Indonesia’s economy,” he explained.

Regarding the concrete efforts in transferring or transforming the economy, the government is promoting a sustainable chemical industry in East Kalimantan.

Amalia Adininggar again added that currently her party is still focusing on the downstreaming of the petrochemical and oleochemical industries.

“We focus on the downstreaming of the petrochemical and oleochemical industries and one of them is the development of the chemical industrial complex,” he said.

With the construction and development of the chemical industry cluster, he hopes that later he will be able to contribute and contribute to the National GDP as well as improve the welfare of the community.

“The development of this cluster is expected to contribute to generating USD 6.5 billion of national GDP and employment of nearly 40 thousand people,” explained the Deputy for Economics at the Ministry of National Development Planning.

According to him, Indonesia itself has enormous prospects for the development of the chemical industry.

“We have great prospects to develop the chemical industry in Indonesia, both based on oil and gas and palm oil, because Indonesia is one of the largest importing countries for chemical raw materials,” he said.

Similarly, Expert Staff for Natural Resources, Regional Economics and People’s Welfare, Christianus Benny stated that IKN development will have an impact on accelerating the structural transformation of the economy.

After that, for him, when the structural transformation of the economy has taken place, sustainable regional development will also be increasingly encouraged.

“This economic structural transformation will ultimately be able to encourage the process of sustainable regional development,” he said.

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