Deputy Minister Of Finance Suahasil: IKN Is The ANSWER To Overcoming Development Inequality In Indonesia

The design of the Garuda Penajam Palace (Source: Wikimedia Commons)

JAKARTA - Deputy Minister of Finance (Wamenkeu) Suahasil Nazara said the government is currently setting many priorities and medium-term focus, including the first is infrastructure development.

According to him, the progress of the development of the capital city of the archipelago (IKN) will become a motorcycle in the direction of Indonesia's development in the future.

It is stated that IKN has a central role in encouraging equity throughout the country.

"The development of a new IKN currently characterizes it (infrastructure development), and at the same time to address the inequality between Western Indonesia and Eastern Indonesia, as well as to address the development of Java and Outside Java. We are very confident that the new capital city will become a catalyst to improve inequality that was originally in Indonesia," he said in a written statement on Thursday, December 8.

Suahasil added that the second government focus is on finding new sources of growth.

"We certainly often hear President Joko Widodo some time ago quoting the need for Indonesia to get downstream, especially our natural resources, we want to see more added value created in the country. So if we read the news about the ban on exports, (in fact) the ban on exports is not the goal. The goal is about downstreaming many of our natural resources in Indonesia. So nickel and bauxite and others need us to explore further into the downstream industry," he explained.

Sri Mulyani's deputy also said that the country is very focused on preparing for the transition to a green economy which is another source of economic growth.

"Currently we are intensively digitizing the economy. Digitalization must certainly be in accordance with the principles of a green economy and this will change the economic landscape in Indonesia a lot," he said.

For information, the government has prepared an infrastructure budget of IDR 392 trillion in 2023, including the need for funds for infrastructure development.

This figure is recorded to be greater than the 2022 period which amounted to IDR 363 trillion.