The Dean of the Faculty of Economics and Business at the University of Indonesia (FEB UI), Teguh Dartanto, made the statement at an online public discussion on the National Capital (IKN) Bill, accessed from here on Tuesday.
"East Kalimantan's economy will shift into a newer, more modern, and relevant to fresh industries that will be developed in the region," Dartanto explained.
Therefore, he suggested that new industries in East Kalimantan be made more sustainable and greener than the ones in Jakarta. It is estimated that transferring the capital from Jakarta will involve 379 thousand workers by 2025 and nearly 800 thousand by 2045, he noted.
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"This means that the (capital transfer) will be a driver that boosts manpower, job openings, and employment opportunities even though it will be dominated by government administration and social security (jobs)," he pointed out.
Meanwhile, according to Dartanto, the impact of moving the capital to East Kalimantan on economic equality will depend on the scope, design, and government's investment in the region.
"The acceleration of development in the outer regions of Java also depends on the connectivity of the country's capital with other regions. If the connectivity of flights and transportation is not running, the development will not be much beneficial," he explained.
The center of the new capital in East Kalimantan should also be able to encourage the development of regional centers around it by making the area around the capital such as South Kalimantan, Central Kalimantan, and Sulawesi part of the supply chain, he said.
Economic equality will also depend on how East Kalimantan province and its surroundings prepare productive and innovative manpower, not just those who act as "spectators", he remarked.
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Translator: Sanya S, Kenzu T
Editor: Suharto
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