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Development of IKN Helps Drive Economic Growth


The capital city of Indonesia will be moved to Kalimantan and this transfer is a positive thing, because it will absorb productive workers and promote economic growth. The community will be helped because the world of business and the economy is getting more dynamic, thanks to the move of IKN to East Kalimantan.

When the capital city of Indonesia was about to be moved from DKI Jakarta to Kutai Kartanegara and North Penajam Paser, East Kalimantan, many were amazed. This is because moving the capital city is something very new in Indonesia. So that there are parties who are surprised and think that it is not.

Even though in the Bung Karno era, there had been talk of moving the capital city, the aim was to be in the middle of Indonesia. The difference is that previously the capital city was proposed to be moved to Palangkaraya. Although this has not materialized, Bung Karno’s idea is very realistic.

The relocation of the capital is planned to be carried out in 2024 and it is certain to bring positive things, especially in the economic field. Head of Bank Indonesia Representative for East Kalimantan (Kaltim) Province, Ricky Perdana Gozali stated, various physical projects in the Archipelago National Capital (IKN) area have contributed to the rate of economic growth in this area, including from the investment side. 

East Kalimantan’s investment performance in the fourth quarter of 2022 was recorded to grow by 8.32 percent, higher than the previous quarter which grew 5.90 percent. This significant growth occurred in line with the continued development of IKN infrastructure.

Ricky Perdana continued, as projects at the IKN continue to the future, he estimates that the economy of East Kalimantan in the first quarter of 2023 will still grow positively, although slightly slower than in the fourth quarter of 2022. This estimate is driven by various factors, including high rainfall rain at the beginning of the year and there is a seasonal pattern of coal production which tends to be less in the first quarter.

Infrastructure development will have a positive impact on economic growth in East Kalimantan. When many roads are built, it will facilitate the mobility of residents and they can get to work quickly. In addition, good roads also facilitate trade, because the delivery of goods will be smoother. 

Residents of East Kalimantan, especially in Penajam Paser Utara, are proud of the fast and neat infrastructure development in their area. They have long wanted a representative highway to facilitate mobility. 

Development also triggers economic growth because project workers will need food, accommodation, transportation and so on. That way the local population will provide it and their economy will get better, thanks to the development of the National Archipelago’s IKN.

Meanwhile Abdul Somad Al-Banjari alias Amad Baday, Chairman of the Laung Kuning Banjar DPP throughout Indonesia, said the move of IKN to East Kalimantan was a blessing for the people of Kalimantan because it would advance both in terms of the economy and civilization on Kalimantan. 

The positive impact that has been felt is the increasing economy in the City of Balikpapan from hotels, MSMEs and other trades. Laung Kuning Banjar supports the development of the National Archipelago’s IKN and is ready to collaborate with the TNI-Polri to oversee and secure the construction of the IKN. It is hoped that the Banjar customs and culture can be preserved along with the progress of the development of the Archipelago IKN.

The construction of a new state capital is one of Indonesia’s economic recovery strategies. It will also absorb a large workforce. During construction in the first year, it will absorb 100,000 workers. Meanwhile, BPS predicts that moving the national capital will absorb around millions of workers. This is very good because during the pandemic, many unemployed people were scattered.

When there is a vacancy in Kalimantan, it will be very good, because applicants will flock there. If the number of native Kalimantan workers is still lacking, employees from other areas can be added. So that it will reduce the number of unemployed not only in Kalimantan, but also in East Nusa Tenggara, Java, Sumatra and others.

The number of workers needed is not only for drivers and unskilled laborers, but also in other sectors such as planners, architects, project designers, interior designers, etc. So that there will be more and more local people who excel and are attracted to handle the project to move the national capital and work for Indonesia.

It is clear that the project to relocate the national capital will have a positive impact, because it can reduce unemployment in Indonesia. So that one problem will be solved, namely the threat of poverty. Due to the fact, many new unemployment due to the effects of the pandemic, and when they can work again.

The problem of increasing unemployment is very serious because it can spread to other areas, for example in the psychological, social and criminal fields. If someone is unemployed for too long then he will be stressed and has the potential to become depressed. It’s really a loss if there is a potential nation’s son but ends up in a mental hospital bed.

The problem of crime during a pandemic cannot be underestimated either. When many are unemployed, some may fall prey to Satan’s temptations, and snatch them with excuses to buy rice. So that the capital city relocation project can certainly avoid negative things like that.

The development of the Nusantara National Science Institute will encourage Indonesia’s economic growth because it is triggered by good infrastructure. With smooth paved roads, the mobility of residents in East Kalimantan will be smoother. Those who trade will feel a positive impact because the delivery of goods is also faster, thanks to the infrastructure built by the government.

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