Jokowi: Capital Moves to Overcome Economic Inequality


The President of Indonesia, Joko Widodo, has affirmed his commitment to moving the capital to the island of Kalimantan, even though some parties have rejected the plan. He emphasized that it was important to move the capital city to create economic equality in Indonesia.

This was conveyed by Jokowi when giving a briefing to Governors throughout Indonesia at the Novotel Hotel Balikpapan, Sunday, (13/3/2022).

“It doesn’t mean we want to leave DKI, don’t let anyone interpret that, because our country is a huge 17 thousand islands, 58 percent of the economic GDP is in Java, currently the magnet is in DKI Jakarta. 56 percent of the population is in Java, so there is inequality. economy, infrastructure inequality,” he said.

Furthermore, Jokowi wants with the construction of the capital city of the archipelago, Indonesia has a city with international standards that has international standard facilities as well.

“We want to have an international city, an international hospital, an international university, previously it was not allowed, because of the omnibus law now it is permissible, the governors, if you want to attract investment from outside, please,” he concluded.

Present to accompany the President at the event were Minister of State-Owned Enterprises Erick Thohir, Minister of Public Works and Public Housing Basuki Hadimuljono, Minister of National Development Planning/Head of Bappenas Suharso Monoarfa, Minister of Investment Bahlil Lahadalia, Cabinet Secretary Pramono Anung, Head of the Archipelago Capital Authority Bambang Susantono, Deputy Head of the IKN Authority, Dhony Rahajoe.

It is known, After DKI Jakarta has become the nation’s capital, later the capital of Indonesia will be moved to East Kalimantan Province under the name Nusantara. Now, the first project which takes time in 2022-2024 will focus on three parts of work.

The three divisions of work that are prioritized for development in this first phase are urban development, infrastructure development, and economic development.

This is explained in Appendix II of Law Number 3 of 2022 concerning the State Capital which reads, “The city development workflow consists of activities related to urban planning and government relocation”.

In 2022-2023, the initial stage of construction will begin in some of the central government’s main areas (KIPP). For the first phase, housing for ASN, TNI, Polri, and BIN will be built. Housing is formed in the form of landed houses or apartment units.

Then, to support the construction of this early stage of development, several supporting facilities such as places of worship, markets, and consumption accommodation were also built by the government around the location of the new National Capital City (IKN).

Furthermore, the relocation of residents will begin with the TNI, Polri, and BIN in 2023. Then, the relocation of representatives of the executive, legislative, judicial, and ASN bodies will begin in early 2024.