JAKARTA – Executive Director of the Center of Reform on Economic (CORE) Mohammad Faisal is optimistic that relocating the State Capital (IKN) to East Kalimantan is a strategy to realize Indonesia’s 2045 Vision.
“In 2045 to developed countries with a higher standard of economic growth per capita,” said Faisal in a dialogue program at RRI, Wednesday (20/4/2022).
He explained that the relocation of the capital city was more in the context of equity because of the inequality between Java and outside Java in the last 20 years. Equity in the area must be achieved in addition to the high economic growth target.
According to Faisal, by moving the capital city, there will be a more balanced center of economic growth outside Java. In addition, problems in Jakarta as the capital city such as congestion and air pollution will be reduced.
For economic equity, Faisal said there must be a strategy for growth higher than the Covid-19 pandemic which was only 5 percent. “The New Capital City is the realization of economic growth and there is a changing trend,” he said.
Faisal added that there are many strategies and derivatives that must be considered in moving the capital city. The derivative strategies include; how to ensure growth not only in East Kalimantan but across Indonesia. Especially in Eastern Indonesia. Thus, development in the context of relocating the capital city must be connected to other regions.
Another point that must be considered is relocating industries in Java to the new capital city. The last strategy is how to streamline logistics outside Java, which is more expensive than Java. Including infrastructure, manufacturing, and human resources must be considered.
Faisal emphasized that the process of moving the capital city requires a long time and process. It is not enough to transfer in just 10 years.
“The process is gradual. Indeed, there are core stages and other stages. This is long term from period to period. Twenty years or more. So there is continuity between regimes. This process is not short and this must be realized,” he said.
