Realizing equitable distribution of the national economy is one of the main objectives of the development of the National Capital City (IKN) of the Archipelago in East Kalimantan. Equitable development and the economy by reducing income inequality is a big concept of President Joko Widodo which he has implemented in various national policies. The results of the 2020 Population Census by the Central Statistics Agency (BPS) recorded that Indonesia's population reached 271.35 million as of December 2020. Of that number, 131.79 million people or 55.94% of the population live in Java. Then, the percentage of 21.73% is in Sumatra, 7.43% is in Sulawesi and 6.13% is in Kalimantan. In addition, BPS also noted that Java's economic contribution to Gross Domestic Product (GDP) was still dominated by 59%. Followed by Sumatra 21.31% and Kalimantan 8.05%. Then Sulawesi 6.33% and Papua 2.24%. It is clear that the Java region does not only dominate in terms of population, the contribution of Java's economy to Indonesia's economic growth on Gross Domestic Product (GDP) is also very dominant or Java centric. However, if you look at economic growth spatially in 2021, various eastern regions of Indonesia have great potential by experiencing high growth. Economic growth in Maluku and Papua is 10.09% and Sulawesi is 5.67%. Then followed by Java which grew 3.66% and Sumatra grew 3.18%. Then, Kalimantan grew by 3.18% and Bali and Nusa Tenggara grew by 0.07%. The economic potential outside Java and Sumatra is what the government is trying to realize through the transfer of IKN to North Penajam Paser Regency, East Kalimantan, so that economic equity can be realized.
Main Expert Staff of the Presidential Staff Office (KSP) Rwanda Wandy said the idea of relocating IKN was aimed at overcoming inequality between Java and the Outer Islands and encouraging economic growth in the regions. The decision to relocate the IKN, according to Rwanda, is to reduce the burden of Java so that it is not dominant to the national GDP or Java-centric, so that this development creates a new epicenter in Kalimantan and other islands. Geographically, IKN which is located in the middle of Indonesia can bring the capital city closer to other islands, so it will be easier to encourage trade access between regions. The Coordinating Minister for Economic Affairs Airlangga Hartarto said the same thing, who said that the transfer of IKN was one of the strategies to shift the portion of economic growth and development from the west to the east. The government is well aware of the gap in economic development between Java and outside Java, so that IKN development has been directed outside Java with a more balanced location spatially and economically, as a stimulus for equitable distribution of national economic growth. This effort is expected to be a game changer to find new economic sources that promote equity in order to be able to grow the economy faster. Currently, the government is also in the process of looking for potential investors from various countries such as the UAE and Japan to invest in a city that will have a smart city concept by prioritizing environmental aspects. The existence of investors is very crucial considering that the State Budget (APBN) is not fully able to bear the burden of moving IKN which is about an hour's drive from Balikpapan.
Launching from the Ministry of State Secretariat, IKN Nusantara is designed to unlock Indonesia's overall economic potential, encourage economic growth, create jobs and reduce poverty levels. The existence of IKN Nusantara will encourage trade between regions, encourage investment in new capital cities and surrounding provinces and encourage economic diversification so that it can increase trade flows by more than 50% and reduce the gap between regions percent in Indonesia. Meanwhile, Head of BPS Margo Yuwono explained that the transfer of IKN will certainly bring about changes to the spatial structure of the economy, however, for now it is not clear to what extent the changes will be. According to him, how much change will occur will depend on economic activity there later. He said the magnitude of the impact on the new economy will be seen after IKN moves and life begins there. IKN Nusantara will also make a turnover of expenditures in the APBN, as well as financial allocations and policies that were originally centered on the island of Java can be evenly distributed to various regions in Indonesia. Later, IKN Nusantara will have six economic clusters which include the Clean Technology Industry, Integrated Pharmacy, Sustainable Agriculture Industry, Ecotourism and Health Tourism, Chemicals and Chemical Derivatives, and Low Carbon Energy. There are also two supporting clusters, namely 21st Century Education and Smart City and Industry 4.0 Center. In addition, around the IKN, there are already two cities that support the economy, namely the City of Balikpapan and Samarinda which can support the integration of IKN with other regions in Indonesia. With all that, IKN Nusantara is intended to bring a multiplier effect that makes the epicenter of growth more evenly distributed to areas outside Java to support Indonesia-centric development towards advanced Indonesia 2024.
Source : https://www.antaranews.com/berita/3019641/mewujudkan-ekonomi-yang-merata-melalui-ibu-kota-negara
