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South Korea’s Commitment to Support the Acceleration of IKN Development


By: Dewi Lestari Ayu

January 18, 2022, is a historic day for the Indonesian people with the passage of the Bill on the State Capital (IKN) into law by the Indonesian House of Representatives and the Government. Thus, Indonesia will have a new IKN to replace Jakarta.

Seeing Jokowi’s long and fast plan to move IKN above, it is necessary to understand the urgency of moving IKN. First, face the challenges of the future. In accordance with Indonesia’s 2045 Vision, namely Advanced Indonesia, Indonesia’s economy will enter the top 5 in the world in 2045. In that year it is estimated that GDP per capita is US$ 23,119.
In 2036, it is estimated that Indonesia will get out of the middle income trap. Therefore, economic transformation is needed to achieve Indonesia’s Vision 2045. Economic transformation is supported by downstream industry by utilizing human resources, infrastructure, simplification of regulations, and bureaucratic reform starting from 2020-2024. Therefore, IKN is needed that can support and encourage this economic transformation.

Second, IKN must encourage inclusive and equitable economic growth, including in Eastern Indonesia. So far, Jakarta and its surroundings are famous for being the center of everything (government, politics, industry, trade, investment, technology, culture and others). It is not surprising that the circulation of money in Jakarta reaches 70 percent, with an area of ​​only 664.01 km² or 0.003 percent of Indonesia’s total land area of ​​1,919,440 km². Meanwhile, the population is 10.56 million people or 3.9 percent of Indonesia’s population of 270.20 million people (2020 data).

This causes inequality in development and welfare in Indonesia. Centralized development in Jakarta and the island of Java. This condition is not good for Indonesia’s economic growth which is expected to be sustainable, does not utilize regional potential optimally, does not support justice between regions, and is vulnerable to national unity and integrity.

Therefore, an IKN is needed that can answer these challenges, namely a world-class city for all Indonesian people. IKN which is located in Kalimantan is expected to be a new economic “center of gravity” in Indonesia, including in the central and eastern regions of Indonesia. The new IKN is expected to create new centers of economic growth and maximize the potential of regional resources.

Third, the objective conditions of Jakarta are no longer suitable as an IKN. This can be seen from the “burden” that must be borne by Jakarta, among others 1) a population density of 16,704 people/km² while Indonesia’s population density is only 141 people/km². 2) Congestion Jakarta, which is the 10th most congested city in the world in 2019, even though it has decreased to number 31 out of 416 big cities in 57 countries in 2020 (TomTom Traffic Index). 3) environmental and geological problems that have become acute include floods that hit Jakarta every year and land subsidence which causes parts of Jakarta to be below sea level.

The transfer of IKN from Jakarta to Kalimantan definitely brings pros and cons. However, as a democratic country, when the government has decided to move IKN with a democratic process through the law, all components of the nation should support it. The Indonesian nation needs to minimize the excess of IKN transfers. There is no single decision that satisfies all the people, but decisions that provide greater benefits to the Indonesian people must be supported as a form of love and devotion to the Republic of Indonesia.

The amount of funds that will be disbursed for this development makes Indonesia open up opportunities for other countries to participate in cooperation, support comes from various countries, one of which is South Korea. President Joko Widodo (Jokowi) revealed that South Korea (South Korea) agreed to support development in the National Capital (IKN) of the Archipelago with a total investment of US$ 6.37 billion or Rp. 94.62 trillion (assuming an exchange rate of Rp. 14,862 per US dollar). . This high investment includes the development of a Smart city. South Korea’s support for IKN development was also carried out through the signing of a memorandum of understanding on investment cooperation between PT Krakatau Steel Tbk (KRAS) and the South Korean Ministry of Investment.

South Korea (South Korea) will also take part in the construction of the immersed tunnel, aka the underwater toll road at IKN Nusantara. This happened through the continuation of the agreement between Indonesia and South Korea regarding cooperation with Indonesia. PUPR Minister Basuki Hadimuljono revealed that the construction of the IKN undersea toll road was included in the list of cooperation that he signed with South Korean Deputy Minister of Agrarian, Infrastructure and Transportation Lee Won-Jae, in Sejong, Korea.

“The forms of cooperation that will be carried out are exchanging information, sharing experiences, knowledge and technology, sending experts, capacity building, pilot projects, and other forms of technical cooperation,” Basuki said in his official statement Monday (1/8).

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