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Development of Indonesian IKN Accelerates Indonesia’s Economic Transformation

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By: Anggi Puti Hutagaol )*

The relocation of the National Capital (IKN) to East Kalimantan continues to be in process and the Government continues to continue various strategic projects in the area. This IKN development program certainly needs to receive support from all elements of society because it is believed to be able to accelerate Indonesia’s economic transformation.

President Jokowi carried out a series of groundbreakings for IKN projects in East Kalimantan on Wednesday (17/1). There are at least 10 projects that will begin construction and are divided into three main categories.

The first is a BUMN project. There is PT Pos Indonesia (Persero) which is building the Nusantara Logistic Hub. Then, RRI will also build a radio broadcast studio at IKN. The second category is private projects. In this category, SUN Hub will build a warehouse area and Jambuluwuk Hotel & Resorts will build a five-star hotel.

Other private parties such as Katadata Green, Tracein, and BenihBaik.com will also build green Islamic boarding schools which are reforestation pilot projects. Also, PT Wulandari Bangun Laksana will build the Nusantara Warehouse Park. The third category is the groundbreaking of state agency offices, the National Capital Authority (OIKN) together with the Ministry of Public Works and Public Housing (PUPR) will build the OIKN Office.

In his remarks at the groundbreaking event, President Jokowi appreciated the launch of the Nusantara Logistic Hub and Services. The reason is, logistics and courier services are really needed because the movement of people and goods in IKN is starting to get busy. Plus many offices are starting to prepare to operate.

For this reason, the head of state hopes that the existence of goods delivery services can make logistics costs more affordable. Also accelerates and streamlines logistics movements throughout the region.

It cannot be denied that moving the National Capital to East Kalimantan could also be a catalyst for fairer economic distribution, as well as increasing economic and social growth that is much better than today.

Previously, Deputy for Regional Development at the Ministry of National Development Planning/National Development Planning Agency (Bappenas) Rudy Prawiradinata said, to reach fifth place in the world in 2045, hard efforts are needed, one of which is moving the country’s capital to create a new economic center.

Building IKN not only prepares the infrastructure and environment, but also the people, both those who will move and those who have been staying for a long time. The Ministry of National Development Planning/Bappenas has projected the population and urbanization that will occur in the National Capital City. Currently, the local population of IKN is recorded at 100 thousand people. This number is estimated to increase to 700 thousand people in 2025, then grow to 1.5-1.6 million people in 2035, until it reaches an estimated 1.7-1.9 million people in 2045.

According to Deputy Rudy, there are several sectors that will be developed in IKN so that local communities can participate in IKN development. Starting from the service sector, higher education, and digital industry and innovation, this will be developed in the National Capital region

One of the most important aspects in the IKN transfer process is of course human development. Therefore, the Government is currently preparing a young generation who is intelligent and has competitiveness. Because, today’s young generation is one of the keys to success for Indonesia in achieving the 2045 Golden Indonesia target.

Higher education is one of the government’s strategic partners in carrying out transformation in society, to accelerate the formation of superior human resources so as to realize a developed Indonesia.

IKN development will also not eliminate local identity and culture, but will still pay attention to ecology, economy, social and culture and understand the diversity and social conditions of local communities.

In realizing a pluralistic and harmonious IKN in accordance with the identity of the Indonesian nation, a comprehensive understanding and planning of socio-cultural and socio-economic aspects is needed. Social aspect planning is carried out by ensuring factors, such as community acceptance, improving the quality of human resources, utilization and development of local wisdom, community livelihood sources, as well as the role of various parties including the millennial generation in IKN development.

IKN is a symbol of national identity that shows the identity of the nation and state. Later in IKN, a heterogeneous and intermingling community structure between local/native residents and immigrants is expected to strengthen Indonesia’s diversity. Interaction of various citizens and socio-cultural acculturation is a necessity.

Deputy for Socio-Cultural and Community Empowerment at the IKN Authority, Alimuddin, said that future IKN owners will be the younger generation. For this reason, the government’s current task is to lay the initial foundation for IKN development.

IKN development is not only in the form of infrastructure and economic development, but also sustainable cultural, environmental and educational development.   Sustainability in question includes innovation in all sectors of life with changes in technology, thought patterns, systems and policies with participation in all aspects of life.

The capital city of the archipelago is a long-term investment for the Indonesian nation in facing future global conditions. The success of IKN development will also have an impact on equal distribution of the Indonesian economy to all corners of the country. Cooperation and public trust are really needed to support the realization of IKN which is expected to become a city that is the center of world civilization.

)* The author is a Public Policy Observer

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