IKN development to stimulate equitable economic growth: Minister

IKN development to stimulate equitable economic growth: Minister

Coordinating Minister for Economic Affairs Airlangga Hartarto in a general lecture at the University of Balikpapan, Balikpapan, East Kalimantan on Saturday (June 18, 2022) . ANTARA/HO-Coordinating Ministry for Economic Affairs

Development of IKN has been directed to location outside Java Island which is more balanced spatially and economically, as a stimulus for equitable distribution of national economic growth
Jakarta (ANTARA) - Coordinating Minister for Economic Affairs Airlangga Hartarto said the development of the Nusantara capital city (IKN) in Kalimantan would become a stimulus for equitable distribution of national economic growth.

"Development of IKN has been directed to location outside Java Island which is more balanced spatially and economically, as a stimulus for equitable distribution of national economic growth," Hartarto said in a statement obtained here, Sunday.

According to data of the Statistics Indonesia (BPS), during 2021-2022 around 57 percent of the country's population is concentrated in Java and its contribution to Indonesia's GDP is 57.78 percent in the first quarter of 2022.

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During the same period, Kalimantan Island contributed 8.29 percent to GDP, Sumatra 21.96 percent, Sulawesi 6.73 percent, Bali and Nusa Tenggara 2.66 percent and Maluku and Papua 2.58 percent.

In the long term, IKN Nusantara is expected to serve as an economic super hub and national economic value chain.

The economic super hub development will be developed in six strategic, resilient, and innovative economic clusters, namely the clean technology industry cluster; integrated pharmacy; sustainable agriculture industry; ecotourism; chemical and chemical derivative products; and low carbon energy.

In addition, there are also two supporting clusters, namely 21st century education and smart cities and industrial centers 4.0.

"Relocating the capital city to Kalimantan Island and making it an economic super hub is one strategy to shift the portion of economic growth and development from the west to the east (eastern region of Indonesia)," he said.


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The minister reiterated that collaboration and participation of every relevant stakeholder was the main key for smooth development of the IKN Nusantara.

"Contribution of various elements, including universities, is expected to accelerate the realization of investment in the development of Nusantara which is in line with the government's development strategy," he elaborated.

In addition, IKN development would require quality human resources, especially among local residents.

Increasing the national education budget, he added, is one way for the government to improve human resources quality with an allocation of Rp542.8 trillion in education funds in 2022.

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