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The Transfer of the State Capital is a Form of Government Concern for the Equitable Development

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By: Abner Wanggai )*

The Jokowi-Ma’ruf government continues to accelerate the process of moving the National Capital to Kalimantan Island. The relocation of the State Capital is a reflection of the Government’s concern for equity.

We all know that so far the pulse of economic activity in general is still concentrated in Jakarta and Java. So that Java becomes very dense and creates inequality with islands outside Java. If this is allowed to continue without serious effort, then inequality will worsen.

Moving the capital to Kalimantan is a wise solution to reduce problems in Jakarta, such as traffic jams. In addition there are still many other problems, such as population, to land subsidence resulting in flooding.

Indonesian President Joko Widodo said the planned move of the capital to Kalimantan Island was expected to be able to encourage new economic growth, as well as spur economic equity and justice outside Java.

The new capital city, will not only be designed as a symbol of identity, but a representation of the progress of the nation, by carrying out modern concepts, smart and green city, using renewable new energy and not relying on fossil energy.

It is arguably the transfer of the country’s capital will be an important entry point in the efforts of equitable national development. Bringing the central government to the underdeveloped poor is a strategic step for the development of the region.

Jokowi also emphasized that the plan to relocate the national capital (IKN) was one of the efforts to create equitable and sustainable economic justice for Indonesia.

Nearly 60 percent of GDP is contributed by the island of Java and 70 percent of the national economy cake is there. So that the new capital region is expected to improve the economy equally.

By moving the capital city, it will certainly shift the development paradigm which for a century has focused on jawasentrism or concentration on Java to non-jawasentrism, especially in eastern Indonesia which has been lagging in various aspects.

This transfer will certainly end the myths of the backwardness of eastern Indonesia and at the same time accelerate the equitable development to be present and increasingly reach the marginal and periperal regions of Indonesia.

Deputy Chairman of KEIN Arif Budimata said that almost 60 percent of GDP contributed by PDAB was contributed by the island of Java and 70 percent of the national economic cake was there.

The eastern part of Indonesia and Kalimantan are very rich in extractive natural resources, but very poor in terms of human resources, and modern organizational and management capacity.

The new capital city must certainly be able to become an effective and efficient power house to accommodate the dynamics of national, regional and global progress. Not like Jakarta which shows the impression as a national burden.

Even traffic jams occur almost every hour due to overcapacity in terms of demographic, economic and ecological.

The relocation of the capital city can certainly be interpreted as the removal of various opportunities and opportunities in the fields of economy, technology, investment which ultimately will produce multiflier-effects in economic equality and narrowing of economic disparities, especially between Java and outside Java.

One opportunity for the wheels of the economy to turn around in the new Capital City will be the emergence of a new service sector that will complement the service sector that was there before. This, of course, will have a positive impact on the economy in the region.

The economic impact will certainly be maximized if synergized with increased productivity, innovation and technology in the selected provinces and surrounding regions.

The relocation of the capital is also welcomed by property entrepreneurs, he said, the discourse of the transfer of capital will be carried out by the government. Moreover, the aim is to do equitable development.

Indonesian Kadin Deputy Chairman for Property, Hendro S. Gondokusumo, said the relocation of the capital city was a business opportunity for property industry players. Moreover, there are several state civil servants and also several private employees who have moved to East Kalimantan.

Hendro also believes, if later the transfer of the Capital goes well, it can certainly boost the property sector. Because the property sector greatly influences the growth of other sectors.

Of course the effort to relocate the capital city is not an easy matter, but we certainly have to be sure and optimistic that all challenges can be overcome for the sake of equitable development in Indonesia.

)* The writer is a Papuan student living in Yogyakarta

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