Observer Says IKN Transfer Makes Property Prices In Jakarta Rise

Illustration (Photo: Doc. Antara)

JAKARTA - Property observer Ali Tranghanda from Indonesia Property Watch said the construction of the National Capital City (IKN) of the Archipelago in East Kalimantan could push up property prices in Jakarta.

"Is the issue that Jakarta will be quiet? Not really. Jakarta can be quiet if for example there is a policy of the central banking, finance, and stock exchange all having to move to IKN," Ali said as quoted by Antara, Friday, August 26.

However, as long as the stock exchange and national financial center are still in the province led by Governor Anies Baswedan, Jakarta will still be seen as Indonesia's business center.

Nevertheless, he warned regarding the possibility of sub-urbanization as a result of the transfer of IKN.

Sub-urbanization is Jakarta's buffer areas that were previously unprepared, slowly getting ready to grow into a city equivalent to Jakarta.

Thus, property prices will be higher considering that Jakarta is becoming more comfortable to live in, due to the reduced level of pollution and overcrowding that has been happening so far.

"I see this is good. We first look at the vision and goals of IKN development because currently around 50 percent of the economy and population are concentrated in Java, so there is no equal distribution," said Ali.

IKN development does not move Jakarta to IKN Nusantara in East Kalimantan.

With the IKN, the government creates new growth.

The development of IKN itself does take a long time, considering that the formation of an economic base and its distribution there takes a long time.

On the same occasion, Vice President of Finance-Strategy and IR Role 99 Group Indonesia Timothy Alamsyah said, the property market is very massive, especially the property market in Jakarta.

"In my opinion, if there is a relocation of the national capital so that the density in Jakarta is reduced, then this is something good for an increase in property prices in Jakarta," he said.

This will make the city of Jakarta a more comfortable place to live, reduce pollution levels, reduce congestion so that property prices in Jakarta will certainly increase.