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Relocation of IKN Improves the Economy in Eastern Indonesia Region

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By: Haikal Fathan Akbar )*

Moving the capital city from Jakarta to East Kalimantan is predicted to boost the economy in Eastern Indonesia and overcome economic inequality, because the circulation of money will be evenly distributed throughout Indonesia. Infrastructure development is also not only around Jakarta, but also in Kalimantan. So it is hoped that there will be an even distribution of economic progress in Indonesia, including in Kalimantan, Sulawesi and other areas in Eastern Indonesia.

Indonesia is an agricultural country and strives to become an Asian tiger. However, one of the problems is that the economy is still struggling in Java and western Indonesia. Even though this country stretches from Sabang to Merauke and people in the central to eastern parts of Indonesia must also have equal economic conditions.

Therefore, the government moved the capital city from DKI Jakarta to North Penajam Paser, East Kalimantan. The new national capital (IKN) named ‘Nusantara’ will make the economy in Kalimantan and Eastern Indonesia more developed. The reason is because with the position of IKN in the middle of Indonesia there will be an even distribution of development and supervision will also be easier.

Deputy Minister of Trade Jerry Sambuaga said that moving (to the capital city) was not only a physical move, but also how to make the system transition properly and smoothly. That is now what everyone in the Ministry of Commerce is preparing for.

Jerry continued, in accordance with President Joko Widodo’s mandate, moving the new capital city to Kalimantan would have a positive impact in terms of economic equality, especially regarding the prices of goods. He was very impressed because President Jokowi was fighting for equitable development, especially for Eastern Indonesia. 

Symbolically, the distance between the center and East Indonesia will be closer. Substantively, too. The affordability and attention of the center for Eastern Indonesia will certainly be greater. This is a breath of fresh air for people outside Java and Eastern Indonesia.

By moving the capital city to Kalimantan, the trade sector outside Java and Sumatra is expected to run even faster. The potential will be huge, not only from the commodity, mining and agriculture sectors, but also from the development of manufacturing and tourism.

Meanwhile, the special staff of the Minister of Finance for Strategic Communications, Yustinus Prastowo, stated that moving the IKN had become a necessity. The goal is to have Indonesia-centric, not Java-centric or Jakarta-centric. 

This means that currently development is still focused on Jakarta and other areas in Java, while on other islands modernization has been a bit sluggish. It is hoped that development will occur rapidly in Kalimantan, and there will be no economic imbalance between Kalimantan and Java. There are also progress and the people are educated so that their economy will also increase again.

Yustinus continued, so far the majority of money circulation is still in Jakarta, even up to 91%. While the remaining 9% spread to other regions. This is very sad, because there should be equity in the circulation of money, if the economy is to be more advanced.

It is hoped that when the capital city is moved to Kalimantan, there will be a fast circulation of money. The Dayak, Banjar and other communities will be more dynamic because the business world will thrive, thanks to the blessings of moving the capital city to Kalimantan. The transfer of IKN is a good thing, because it will overcome economic inequality in Indonesia. 

Imagine if a mall and new buildings were built in East Kalimantan that would support the center of the Indonesian government, it would take a lot of workers. So that it will reduce unemployment and automatically overcome the people’s economy. They get a salary and are free from poverty.

It is hoped that this will spread to other regions, because there will be collaboration between regions. For example, when there is infrastructure development in Kalimantan, workers are brought in from Nusa Tenggara and other areas. They also get sustenance from the construction of the project. This will reduce the number of unemployed throughout Indonesia. 

If there is a new business center, people in Eastern Indonesia can go directly to Kalimantan to do business. You don’t need to go to Jakarta, because Kalimantan is also quite complete. In addition to reducing transportation costs, it is also easier. Because it will motivate people in Kalimantan and its surroundings to do entrepreneurship.

There will be no economic disparity between eastern and western Indonesia, because both regions are equally developed. When there is equity, then hopefully all Indonesian citizens will be more prosperous, because there is modernity, infrastructure, and fast money circulation in their own regions.

Moving the capital city from DKI Jakarta to East Kalimantan will boost the economy in East Indonesia. If the capital city is in the middle of Indonesia there will be an even distribution of development. From the Sabang region to Mereuke, all are equally advanced and the people’s economy continues to grow.

)* The author is a Vimedia Pratama Institute Contributor

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