Unable To Give A Double Impact On The Indonesian Economy, Economists Advise IKN Retrial Projects

JAKARTA - The government is accelerating the completion of the National Strategic Project (PSN), especially infrastructure so that the multiplier effect can be immediately felt by the community. President Joko Widodo (Jokowi) wants the Nusantara State Capital (IKN) project to enter PSN.

In response to this, the Head of the Center for Macroeconomics and Finance, Indef Rizal Taufiqurrahman, assessed that the IKN Nusantara project included or not in the PSN, would not have a multiplier effect on the Indonesian economy. Meanwhile, said Rizal, PSN is a project that has a double effect on the economy.

"I see that IKN will become a PSN or not, in the short term let alone medium will not accelerate our economic growth that is being fought for," said Rizal, Wednesday, September 7.

"When it comes to PSN, it's multiplier effects on the economy, IKN is not to boost economic growth in direct, to accelerate the economy but how can IKN be the backbone of the administration and governance of the state," he continued.

Not only IKN, Rizal suggested that the government also need to consider existing infrastructure projects. For example, said Rizal, whether the construction of existing trans toll roads has an impact on the surrounding community and encourages economic growth.

"The government should first hold infrastructure and evaluate the impact and effectiveness of this impact and policy," he said.

For example, said Rizal, with the current conditions, the price of fuel increases, then the price of new trans toll roads is generally expensive, so freight transportation companies prefer more economical options.

"This will be a dilemma for logistics entrepreneurs, land transportation who use toll facilities, especially for strategic commodities, food commodities that affect price volatiles," he said.

Meanwhile, a different view was conveyed by the Head of the Advocacy and Community Affairs Division of the Indonesian Transportation Society (MTI) Center Djoko Setijowarno. He assessed that the construction of road infrastructure and airports throughout the country was able to increase wider access, especially in border areas.

Djoko said the construction of port infrastructure was also proven to be able to have a double effect on people's lives. For example, the Asmat Regency area which is able to improve the regional economy with the sea highway. "The accident was also done, I went to Asmat, the sea highway had entered there. Asmat's Makmur," said Djoko.

In addition to road access built in border areas, there is also the construction of cross-border posts (PLBN) which will later become the pockets of new economic activities.

"PLBN-PLBN is a center for economic activities that will grow later in border areas. As long as the Ministry of Transportation immediately makes pioneer buses. Let the economy grow," he said.

Djoko said, easier access is also a driving force for people to travel and automatically move the economy. "Just move the tools. People in Java, expensive flights, people can take trains, land too. There are also many Javanese on the bus or take their own car. Because it's easier, it's easier to access," he said.

Previously, Coordinating Minister for Economic Affairs Airlangga Hartarto said the government was accelerating the completion of PSN so that the dual effect could be felt immediately by the community. Not only is it accelerated, the evaluation in its implementation also continues and is monitored so that the project can be completed in accordance with the results that have been planned.

"Mr. President Joko Widodo gave directions that all of these PSN are beneficial to the community, especially related to job creation. Investment in PSN also certainly has a multiplier effect," said Airlangga.

The meeting also discussed PSN evaluations such as the Trans Sumatra Toll Road, the Semarang-Demak Toll Road, the land acquisition mechanism with concessions, PSN certainty for the Nusantara Capital (IKN) infrastructure project, and the Karanganongko Movement Dam, the Tuban-Lamongan-Gresik Toll Road, Bio-fuel development, ethanol, methanol in Bojonegoro, the PSN proposal for the Muaro Jambi Container Terminal, the revitalization of flats, and the Development of Ubadari Field, CCUS, and Compresion (Resil LNG Development).