President Joko Widodo's presentation at the Cabinet plenary session

at Garuda Palace, IKN, North Penajam Paser Regency, East Kalimantan Province

Bismillahirrahmanirrahim.
Peace be upon you, and the mercy and blessings of Allah,
Greetings to all of us,
About the swastika,
NameOr Buddha,
Sincerely.

Distinguished Mr. Vice-President;
Distinguished President-elect Mr. Prabowo Subianto, Coordinating Ministers, Ministers, TNI Commander, National Police Chief, Attorney General, BIN Chief;
Distinguished ladies and gentlemen.

We offer praise and gratitude to the presence of Allah SWT, this morning we were able to hold a special plenary session as it was held for the first time in the national capital of the archipelago. [IKN]. IKN is a canvas that shapes the future and not all countries, and not all countries have the opportunity, have the capacity to build their capital from scratch.

Nusantara was built with a concept forest town/a forest city, a city full of greenery, not a city of concrete or a city of glass. Also smart city, a city supported by technology in every urban activity. And also livable city, a nice city to live in. And we felt this morning how very fresh, fresh and fresh this morning was because air quality index-The rate is very low, namely 6, even though the maximum is 50. And almost many cities now exceed 50.

Moving to the capital of the archipelago, I have often said, it is not the physical movement that is important, but moving our mind, moving mindset We are changing our ways of working, we can work from anywhere, we are also changing our mobility. Because mobility in the capital of the archipelago is entirely by electric vehicles and also uses green energy. The buildings here are also all oriented towards green building and accessibility is also a priority for pedestrians and cyclists.

The economy that will be developed in the Capital of the Archipelago is also a green economy, a digital economy that will accompany the government of the Capital of the Archipelago. Economy, once again, green economy, digital economy, data center, financial centerand others.

If you ask what benefits the people of Kalimantan, especially East Kalimantan, will get from this, I think it will encourage economic growth in East Kalimantan province, especially Balikpapan, specifically North Penajam Paser Regency.

And if we know, one of the reasons why the capital has moved is because we want equality. Because we know that 58 percent of the economic GDP is in Java, so we want to equalize it so that outside Java can also benefit from its economic recovery. Then, the population in Java is also very large, 56 percent of the population is on the island of Java. This is also a consideration for us to move the capital. And above all, the burden on the capital Jakarta is already very heavy.

And as of today, I must also say that already, outside the APBN budget, incoming investments amount to IDR 56.2 trillion out of the 55 that have been revolutionaryThere are six in education, three in healthcare, ten in retail and logistics, eight in hospitality, two in energy and transport, 14 in offices and banking, nine in residential and green spaces and three in media and technology.

The second thing I want to convey in this morning's plenary session concerns the PMI/purchasing manager hint. What we know is that after 34 consecutive months of expansion, in July we entered a level of contraction. This has to be seen, watched carefully because several countries in Asia have PMIs below 50, namely Japan 49.2; Indonesia 49.3; PRC 49.8; Malaysia 49.7. And the component that saw the biggest decline was the production sector, which was minus 2.6, then new orders or new orders minus 1.7, and job minus 1.4.

I really want to find out the root cause and anticipate it immediately, because I have seen that the decline in PMI has been happening for the last four months. We really need to understand why domestic demand is weakening. It could be due to the heavy burden of importing raw materials due to the fluctuation of the rupee or attacks on imported products coming into our country. So it is important, I stress again, to buy local products and then use local raw materials, while protecting our domestic industry. And maybe also because the demand from exports or from abroad is weakening, it is due to disruption in the supply chain or the economic slowdown of our major trading partners. So we need to be able to look for non-traditional markets and look for new potential markets for our exports.

I think that's what I want to convey about this great opportunity. Please feel free if you have anything to say.

THANKS.
Wassalamu'alaikum warahmatullahi wabarakatuh.

Source: https://setkab.go.id/sidang-kabinet-paripurna-di-istana-garuda-ikn-kabupaten-penajam-paser-utara-provinsi-kalimantan-timur-12-agustus-2024/