By: Hafid Rindrahutama)*
The development of the National Capital City (IKN) of the Archipelago is a major project that is expected to be a stimulus for equitable development and stability of the national investment climate. Since its announcement, this project has attracted the attention of various parties, both domestically and internationally. IKN is expected to create new growth points outside Java Island, which has so far been the center of economic and government activities.
The government considers that the relocation of the capital city from Jakarta to the IKN in East Kalimantan is not just a symbolic step. This project is a strategic effort to reduce the disparity in development between regions and address various problems in the old capital, such as traffic jams and environmental degradation. The IKN is designed to be a sustainable city with a smart city concept that integrates modern and environmentally friendly technology.
The existence of the IKN is projected to encourage long-term investment. With planned infrastructure that includes transportation networks, educational facilities, shopping centers, and business centers, the IKN offers great potential for investors. The government has designed an incentive scheme and ease of investment to attract local and foreign entrepreneurs. This step is expected to create a significant multiplier effect for the surrounding regional and national economy.
The positive impact of the IKN development is not only felt from the economic side. The creation of new jobs during the construction process and after the IKN is fully operational is believed to be able to reduce the unemployment rate and improve people’s welfare. Experts also view that the IKN can become a research and development center that is able to attract young talent and increase Indonesia’s competitiveness in the technology and innovation sectors.
Head of the East Kalimantan Investment and Integrated One-Stop Service Agency (DPMPTSP), Fahmi Prima Laksana said that the development of the IKN in East Kalimantan has become a strong magnet for investment in the region. The presence of the IKN has succeeded in driving investment realization reaching IDR 55.82 trillion until the third quarter of 2024. His party is optimistic about East Kalimantan’s investment achievements at the end of 2024 which are projected to exceed the target of IDR 76.02 trillion.
With the figures achieved up to Quarter III, as well as the ongoing impact of the IKN project, investment realization in 2024 in East Kalimantan is expected to again exceed the target and strengthen East Kalimantan’s position as a strategic investment destination for investors.
Fahmi also stated that this significant investment growth was not only driven by the IKN project alone, but also by improvements in supporting infrastructure and other strategic programs that facilitate access and business activities. With the increase in connectivity through the construction of roads, ports, and other supporting facilities, East Kalimantan is increasingly seen as a region with high economic potential. He emphasized that synergy between the government, business actors, and the community is very important to ensure the continuation of this positive trend and maintain a sustainable and competitive investment climate.
Meanwhile, the Chairman of the Central Executive Board of the Indonesian Hindu Dharma Student Union (KMHDI), Wayan Darmawan, assessed that the development of the IKN in East Kalimantan is an effort by the government to build economic equality throughout the region. Since the beginning, the government has wanted to spread the center of economic growth throughout the region so that there is no centralization on the island of Java. The center of the economy must be spread to areas that are considered to experience inequality when compared to the island of Java, one example is the eastern part of Indonesia. This economic inequality is very easy to see in terms of infrastructure development, people’s prosperity and other economic aspects. With the development of the IKN, it is believed that the center of the Indonesian economy will slowly move from the Java island region.
Transparency, efficiency, and synergy between stakeholders are the keys to the success of the IKN development. With the right steps, the IKN is expected to be a catalyst for change that leads Indonesia towards equitable development and sustainable economic progress.
In addition, IKN can be an example for the development of a modern city that pays attention to the balance between economic, social, and environmental aspects. By implementing the principles of green development, this city has the potential to become a model that can be replicated in other regions in Indonesia. This is important to inspire a more holistic and forward-looking development approach in the future.
Strict supervision and continuous evaluation are also needed to ensure that development goes according to plan. Community participation and input from experts in various fields are needed to maximize the benefits of IKN development. That way, this project can be a real step that strengthens Indonesia’s position as a country with a strong commitment to sustainable development and equal welfare.
In addition, collaboration with the private sector and international partnerships are expected to provide significant contributions in terms of technology, funding, and experience in large-scale development. By involving various parties, the IKN project can gain new insights and adopt cutting-edge technologies that accelerate the development process and increase efficiency. This will also open up greater opportunities for the development of local human resources, create jobs, and encourage knowledge transfer that ultimately strengthens national competitiveness in the global arena.
)* Postgraduate student at one of the state universities in Bandung.
