Capital transfer to push financial diversification: UI Dean

Jakarta – The moving of Indonesia’s capital from Jakarta to Penajam Paser Utara, East Kalimantan, is anticipated to encourage diversity in the economic sector, considering that the region is dominated by mines.

The Dean of the Faculty of Economics and Organization at the University of Indonesia (FEB UI), Teguh Dartanto, made the declaration at an online public discussion on the National Capital (IKN) Bill, accessed from here on Tuesday.

” East Kalimantan’s economy will move into a newer, more contemporary, and appropriate to fresh markets that will be established in the area,” Dartanto described.

For that reason, he recommended that brand-new markets in East Kalimantan be made more sustainable and greener than the ones in Jakarta. It is estimated that moving the capital from Jakarta will include 379 thousand employees by 2025 and almost 800 thousand by 2045, he kept in mind.

Associated news: National capital to be moved in first half of 2024: ministry

” This suggests that the (capital transfer) will be a chauffeur that enhances workforce, job openings, and employment opportunities despite the fact that it will be dominated by government administration and social security (jobs),” he mentioned.

Meanwhile, according to Dartanto, the effect of moving the capital to East Kalimantan on financial equality will depend upon the scope, style, and federal government’s financial investment in the region.

” The acceleration of advancement in the external areas of Java also depends upon the connection of the nation’s capital with other regions. If the connection of flights and transportation is not running, the advancement will not be much useful,” he described.

The center of the new capital in East Kalimantan must also have the ability to encourage the development of local centers around it by making the location around the capital such as South Kalimantan, Central Kalimantan, and Sulawesi part of the supply chain, he said.

Economic equality will likewise depend upon how East Kalimantan province and its surroundings prepare productive and innovative workforce, not simply those who serve as “viewers”, he mentioned.

Related news: Financial investment in N Penajam Paser soars following classification as capital


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