Strategic Reasons for Moving the Capital City to IKN: Minimal Disaster to Equitable Economy

Bisnis | Ekonomi - Posted on 14 August 2024 Reading time 5 minutes

DIGIVESTASI - The Minister of Finance during the 2014-2016 Working Cabinet, Bambang Brodjonegoro, revealed three main reasons behind the government's decision to relocate the capital city from Jakarta to Nusantara, located in Penajam Paser Utara, East Kalimantan. Bambang explained that East Kalimantan was chosen based on three key considerations. First, Kalimantan is seen as a region with low disaster risk. "Kalimantan has the lowest disaster risk. Disasters can happen anywhere, but we chose the area with the minimum risk," he said during the launch of a book titled *9 Reasons and 8 Hopes for Moving the Capital* at the Ministry of Public Works and Public Housing (PUPR) on Wednesday (August 14, 2024).

 

The second reason is that Penajam Paser Utara was chosen for its proximity to the sea, representing Indonesia as an archipelagic country. The design of the government center is expected to have a direct connection to water. Third, the area is close to major cities like Balikpapan and Samarinda, which already have more developed infrastructure and economies. "We want to build a capital city that is part of an urban system, not just the capital itself, but also a new agglomeration with Balikpapan and Samarinda," Bambang emphasized.

 

Previously, President Joko Widodo (Jokowi) also highlighted various benefits of moving the capital to Nusantara, one of which is boosting economic growth in the surrounding region. "One of the reasons for moving the capital is to ensure equitable development, as we know that 58% of the country's GDP is concentrated in Java, so we want to distribute economic activity outside of Java," Jokowi said while opening a Plenary Cabinet Session on Monday (August 12, 2024). Additionally, the relocation aims to reduce the burden on Java Island, which accommodates 56% of Indonesia's total population. According to the President, this was a critical consideration for the government in deciding to move the capital.


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Source: bisnis.com

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