Bank Indonesia Explains 3 Impacts Of IKN Development On The Economy

Building Building Project and Area of Coordinating Ministry 3 at IKN. (ANTARA)

SAMARINDA - One of the urgencys of moving the capital city of the archipelago (IKN), is to encourage inclusive and equitable economic growth, including in eastern Indonesia. In line with the IKN development process which began in 2022, currently the Province of East Kalimantan (Kaltim) has felt the impact of the development. Head of Bank Indonesia Representative East Kalimantan Province, Budi Widihartanto explained that from 2022 to 2024, there have been three economic changes in East Kalimantan Province (Kaltim). Each, namely changes in economic structure, increased economic activity and regional revenues and massive infrastructure development. "The change in East Kalimantan's economic structure can be seen from the reduced contribution of mining business fields (LU) to East Kalimantan's PDRB, this is in line with the increasing contribution of other business fields, especially in the construction sector," he explained. Budi said based on data from the Central Statistics Agency, in the first quarter of 2024, the contribution of the mining lu It was recorded at 39.57% of the East Kalimantan PDRB. This contribution is lower than the same quarter in 2021, 2022, 2023 which was recorded at 42.86%, 46.40%, and 50.29%, respectively. As for the contribution of the construction LU, in the first quarter of 2024 it was recorded at 11.46% of the East Kalimantan PDRB. This contribution is higher than the same quarter in 2021, 2022, 2023 which was recorded at 9.35%, 8.73%, and 8.74%, respectively.. From the expenditure side, component contributions other than 2021, 2022, 2023 were recorded at 9.35%, respectively. exports are also strengthening. Especially government consumption for IKN supporting goods and services, as well as the establishment of gross fixed capital (PMTB) or investment, "he added. In the first quarter of 2024, the government's consumption contribution was recorded at 3.20% of East Kalimantan's PDRB. This contribution is higher than the same quarter in 2021, 2022, 2023 which was recorded at 2.60%, 2.38%, and 2.50%, respectively. The contribution of PMTB or investment in the first quarter of 2024 was recorded at 34.84% of GDP East Kalimantan. This contribution is higher than the same quarter in 2021, 2022, 2023, which was recorded at 31.16%, 29.31%, and 28.11%, respectively. "Furthermore, community economic activity, including MSMEs, has increased in line with increasing community mobilization and government consumption," he said. This was confirmed from the East Kalimantan trading LU in 2023 which grew by 6.85% (ctc), the highest since the Covid-19 pandemic that occurred in 2020. The consumption the government in 2023 grew by 36.40% (ctc), the highest since the Covid-19 pandemic. Finally, he said, IKN development also encourages massive regional revenue and infrastructure development. "The presence of IKN increases regional revenue in East Kalimantan," he continued.

Based on data from the East Kalimantan BPKAD, in 2024, the East Kalimantan regional revenue ceiling was recorded at IDR 20.0 T, consisting of PAD (IDR 13.8 T), TKDD (IDR 9.5 T), and Other Revenue (IDR 649 M). This number increased compared to 2023, with the East Kalimantan regional revenue ceiling of IDR 14.6 T. In addition, infrastructure development is also massive in East Kalimantan, especially in the IKN area and its surroundings. There are 4 infrastructure projects that continue to progress, namely natural resources infrastructure, roads and bridges, KIPP, and housing," he concluded.