DKI DPRD Says Moving Capital City Will Lower Jakarta's Economy, Even Java-Sumatra Island

Plan ideas and design criteria for national capitals. ANTARA/Exposure to the Ministry of PUPR/am.

JAKARTA - Head of Commission A for the Administration of the DKI DPRD, Mujiyono, assesses that moving the state capital to East Kalimantan will reduce economic conditions in Jakarta.

In fact, he said, this economic downturn could also have an impact outside Jakarta, such as buffer zones, to other provinces in Java and Sumatra.

"So far, the supply of goods and labor for Jakarta has come from several provinces, either from Java or Sumatra. So, the transfer of IKN will certainly have an impact on those areas," said Mujiyono in his statement, Wednesday, January 19.

Specifically in Jakarta, Mujiyono said the weakening economy was caused by a reduction in household consumption and spending on state civil servants (ASN) due to their move to East Kalimantan.

"In terms of ASN spending, when the capital city moves to East Kalimantan, ASN spending and household consumption will automatically decrease, this will cause the demand for goods and services in Jakarta to fall and make Jakarta's economy also decline," he said.

In addition, Jakarta's economy will also decline due to reduced spending on government administration, particularly those related to the service, hotel, catering and production sectors.

"Government administration spending related to the service, hotel, catering and production sectors will also be affected, considering Jakarta's role as the center of government with many activities held by government agencies," he said.

Furthermore, Mujiyono also assessed that the Government has not optimally implemented the Jakarta Specialty Law as stated in Law No. 29 of 2007 concerning the Provincial Government of the Special Capital City Region of Jakarta as the Capital of the Unitary State of the Republic of Indonesia.

"I suggest that the central government optimize the special law for Jakarta. Because Jakarta has its own history. Like Yogyakarta, Aceh and Papua, the specialization in Jakarta must also be implemented properly. This includes the distribution of special autonomy funds for the people of Jakiarta," he explained. As is known, the DPR RI has officially approved the Draft Law on the State Capital (RUU IKN) to become a law. Therefore, it is possible to move the capital city from Jakarta to East Kalimantan (Kaltim).

The approval was taken at the 13th plenary meeting of the DPR RI for the third trial period 2021-2022 which was held with the government on Tuesday, January 18.

The initial stage of relocating IKN to East Kalimantan takes place in 2022-2024, namely in the form of major infrastructure development such as the presidential palace, MPR/DPR buildings, and housing in main areas.

In the IKN pocket book, it is even written that there was an initial transfer of state civil apparatus (ASN), including the TNI, Polri, and MPR, until the president moved to the new capital before August 16, 2024.

The next phase of relocation will take place in 2025-2035 through core development, such as the development of the next phase of the city in the form of an innovation center to developing priority economic sectors.

At this stage, the government is targeting the completion of the transfer of the central government to East Kalimantan, meaning that the transfer must be completed in a maximum of 13 years.

The next stage in 2035-2045 is the development of the entire infrastructure and ecosystem of the three cities to accelerate the development of East Kalimantan, including increasing connectivity between and within cities.

The government even targets that at this stage IKN can become the number one foreign investment destination and enter the top five main destinations in Southeast Asia for global talent.

In 2045 and beyond, the government projects IKN to achieve net zero-carbon emissions by using 100 percent of renewable energy at installed capacity.