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IKN Strengthens Economic Integration in Indonesia

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Jakarta – The Capital City of the Archipelago (IKN) is not just an ordinary city, but one of its functions is to strengthen economic integration in Indonesia. This country will have a stronger economy thanks to the foreign exchange it will receive from IKN investors. Indonesia can recover from the effects of the pandemic and not be affected by the global recession.

It is predicted that moving the capital city from Jakarta to East Kalimantan will overcome financial inequality and strengthen Indonesia’s economic integration, because the circulation of money will be evenly distributed throughout the country. Infrastructure development is also not only around Jakarta, but also in Borneo, so that there will be an even distribution of economic progress in Indonesia. The economies of developed countries are thanks to the many investors who add to the country’s foreign exchange.

The Head of the Bureau of the Ministry of State Secretary, Eddy Cahyono S, stated that IKN Nusantara was designed from the start as a catalyst to unlock Indonesia’s overall economic potential, encourage growth, create jobs, and reduce poverty.

This is done by making the National Archipelagic National Sciences a symbol of national identity as well as a new economic center of gravity which is expected to bring a multiplier effect by making the epicenter of growth more evenly distributed to regions outside Java to support Indonesia-centric development towards Advanced Indonesia 2045.

Eddy added, it is hoped that IKN Nusantara will be able to disseminate the benefits of economic development. If IKN is moved to a province that has good connectivity with other provinces, an increase in trade flows of more than 50% of Indonesia’s territory can occur.

In addition, it will also reduce inter-regional disparities because moving the capital city outside Java Island encourages trade between regions, encourages investment in the new state capital province and surrounding provinces and encourages economic diversification, so as to create a boost of economic added value in non-traditional sectors in various non-Javanese regions.

IKN will be Indonesia-centric, not Java-centric or Jakarta-centric. In a sense, development is currently still focused on Jakarta and other areas in Java.

Meanwhile, on other islands, modernization has been a bit sluggish. So it is hoped that development will occur rapidly in Kalimantan, and there will be no economic inequality between Borneo and Java. Because there are also progress and the people are educated so that their economy will also increase again.

So far, the majority of money circulation is still in Jakarta, even up to 91%. While the remaining 9% spread to other regions. That is, this is very sad because there should be equity in the circulation of money, if the economy is to be more advanced.

It is hoped that when the capital city is moved to Borneo (Kalimantan), it will be splashed there and the velocity of money will occur rapidly. The Dayak, Banjar and other communities will be more dynamic because the business world will thrive, thanks to the blessings of moving the capital city to Borneo.

Relocating the national capital is actually a good thing, because it will overcome economic inequality in Indonesia. Imagine if in East Kalimantan a mall and new buildings were built that would support the center of the Indonesian government, it would need a lot of workers. So that it will reduce unemployment and automatically overcome the people’s economy. They get a salary and are free from poverty.

It is hoped that this will spread to other regions, because there will be collaboration between regions. For example, when there is infrastructure development in Kalimantan, workers are brought in from Nusa Tenggara and other areas. So that they also get sustenance from the development of the project. This will reduce the number of unemployed throughout Indonesia.

Meanwhile, Minister of Public Works and Public Housing (PUPR) Basuki Hadimuljono stated that interest in investing in IKN Nusantara has increased 25 times the total land offered in 2022. The land will be used for education, health, housing and office facilities.

If the investment increases drastically, it will be very good because the construction of the National Archipelago National Park will be on target and make it a green and sophisticated city of the future. Investors are confident about IKN because they like the concept. Not only a modern city but also a green city and sponge city . Where this city is in the middle of a beautiful forest, and its development will not damage the environment.

Investors get guarantees directly from the President of Indonesia. The government opens its doors wide for investors. President Jokowi stated that IKN Nusantara is the future of Indonesia which can be realized with the joint efforts of all parties, including investors. Therefore, the government opens opportunities for investors to realize the transformation of Indonesian civilization.

President Jokowi added that investing in IKN Nusantara is a golden opportunity that cannot be repeated again. Investors may enter into any sector. For example in the financial center, health care center, education center, housing area, and  tourism area.

If there is already a guarantee from President Jokowi, investors will be even more determined in investing in IKN Nusantara. Among the investors is the Ciputra group which has been known as the ‘king’ of the property business. In addition, there are also foreign investors from China, Taiwan, Saudi Arabia and other countries. Also there is IKEA, a furniture company from Sweden. IKN will strengthen economic integration in Indonesia because the capital city will be moved to the middle of the country, thus leveling progress throughout Indonesia. In addition, IKN will increase the country’s foreign exchange because it invites many foreign investors. Indonesia will be stronger financially and less affected by the global recession.

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