IKN is a true form of equitable development

Bisnis.comJAKARTA – Project Development National Capital (IKN) of the Archipelago It turns out that this not only impacts the growth of the construction and infrastructure sector in East Kalimantan (Kaltim).

Priyanto never imagined that the horticultural development company he had been involved in for many years in East Kalimantan would actually feel the positive impact of the construction of the IKN project, which started in 2019.

Chairman of the Taruna Cooperative Bina Mandiri said that many people do not know that the East Kalimantan region, especially Penajam Paser, has great potential in horticultural crop development. The food sector is increasingly promising with strong demand for food products to meet the needs of the IKN.

Priyanto said that his party received a very large number of orders for the culmination of the celebration of the 79th anniversary of the Republic of Indonesia, which was held at the IKN State Palace on August 17, 2024.

“My heart was beating very fast. I don't believe that the Bina Mandiri Taruna Cooperative was included as a working team for the 79th Indonesian Independence Day event at IKN. “It’s ancient history for us,” Priyanto said when contacted. Business some time ago.

By collaborating with farmer groups in Penajam Paser, the Taruna Bina Mandiri cooperative maximizes agricultural technology to maintain consistent product quality in line with export markets.

He admitted that collaborating with the committee during the celebration of the 79th anniversary of the Republic of Indonesia at IKN was the first step for his party to reach a wider market, both in Kalimantan and on the world stage. According to him, the IKN project can provide greater business opportunities for farmers to benefit from equitable development in remote areas.

“We are ready if we are invited to collaborate to become a fruit production center in IKN Nusantara. “We will be very proud and committed to the farmer groups,” he added.

In accordance with Priyanto, Dharma Andhika Djaya also felt the positive impact of the development of IKN Nusantara on the region's economy.

Dharma, who works as a rental car driver in Penajam Paser, said he was grateful because the IKN project had boosted the tourism sector where he lived.

“We who work in the car rental industry are very grateful for the construction of IKN. MSMEs also increased because many people wanted to buy souvenirs after visiting IKN. “Ultimately, local residents’ businesses became bigger,” he said.

He said residents around Penajam Paser supported the construction of IKN because it helped improve their living standards.

Dharma said that in the past, the roads around his home were not very good. However, he continued, development became more evenly distributed after the government transferred the capital to IKN and encouraged various projects in the region.

“Previously, road access was narrow and many were damaged, but now the situation is improving,” he said.

The real proof of the IKN project as an instrument of the central government to implement equitable development in various regions of Indonesia was recognized by the Acting Governor of East Kalimantan, Akmal Malik.

He said President Joko Widodo's (Jokowi) decision to move the capital from Jakarta to East Kalimantan was the right decision. Apart from that, the construction of IKN will also strengthen Betua Etam's position as the center of modern civilization in Indonesia.

“Idea [pemindahkan ibu kota] to IKN is correct. Attention should be paid to eastern Indonesia. “With the existence of IKN, the direction of future development will automatically be towards the Eastern region,” he said.

From Java Centric to Indonesia Centric

During his decade at the helm of Indonesia, Indonesian President Jokowi managed to change the development model that was previously focused on the island of Java to now be evenly distributed across various regions, especially in the east from Indonesia.

For decades, massive development has always been carried out on the island of Java due to the large number of people living there. In fact, President Jokowi emphasized that Indonesia is not just Jakarta, nor is it Java. Instead, he reminded that Indonesia covers every corner of the country, from Sabang to Merauke, from Miangas to Rote Island.

“That is why the development we are carrying out must continue to be Indonesia-centric and be able to benefit all levels of society in all corners of the archipelago,” President Jokowi said.

Despite various global challenges and uncertainties, Indonesia's economic growth rate during the decade of President Joko Widodo's administration has remained at the 5 percent level. Economic stability supports the achievement of development in various regions of the country, especially in provinces outside Java.

There are three provinces whose economies have boomed during President Jokowi's 10-year presidency. The three provinces are East Kalimantan, Central Sulawesi and North Moluccas.

In addition to the development of IKN, President Jokowi's courage to focus on the downstream mining industry has helped boost the regional economy.

The Central Statistics Agency (BPS) noted that the economic growth of the North Moluccas will be the highest in the country in 2023, reaching 20.49% (year after year/yoy). At the same time, the region's economic growth is consistent with the increased production of downstream nickel plants.

Referring to BPS data throughout 2023, North Maluku province recorded the highest growth, amounting to 20.49% (year-on-year), followed by Central Sulawesi at 11.91%. (year-on-year) and East Kalimantan at 6.22% (year-on-year). Plt. Director of the Central Statistics Agency, Amalia Adininggar Widyasanti, explained that a fairly large industry in both provinces comes from the processing industry of mining products, particularly the ferronickel industry.

Meanwhile, the Ministry of Investment/Investment Coordination Board (Investment/BKPM) noted that East Kalimantan is among the top 5 regions with significant investments. Mainly, investments entering East Kalimantan are supported by the presence of the IKN project.

According to the Ministry of Investment/BKPM, the IKN area has become a Prime Area for National Investments (PMDN) throughout Semester I/2024, with investment realization reaching IDR 24.4 trillion. Compared to investment realizations in the same period of the previous year, the value of investments injected by domestic investors into East Kalimantan increased by 8.9%, from IDR 22.4 trillion in H1/ 2023 to IDR 24,400 billion in semester I/2024.

Accelerated development infrastructure Apart from Java, it is hoped that this will open the door for greater investments in other regions, including the island of Kalimantan, the island of Sumatra, the island of Sulawesi and the island of Papua.

Economic development outside Java, especially IKN infrastructure development, can be an opening path to achieve long-term economic equality, in line with the National Long-Term Development Plan (RPJPN) 2025-2045. During his 10-year rule, President Jokowi made major contributions to expanding the list of national infrastructure portfolios, including the IKN.

President Jokowi's enthusiasm for developing Indonesia from the periphery or outside Java is a priority program for Nawacita that he launched in 2014. This can be seen in the budget disbursement. immense infrastructure. In fact, the government's infrastructure budget reached IDR 3.592 trillion during its decade of leadership.

President Jokowi's commitment to focus on building IKN as a modern city is reflected in the budget allocation disbursed by the government from 2022 to 2024. Based on data from the Ministry of Finance, the budget allocation Total for the development of IKN that was disbursed by the government reached IDR 75.0 trillion over the past three years.