Will Jakarta’s Economy Drop as the Capital Moves?

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Chairman of Commission A DPRD DKI DPRD DKI Jakarta, Mujiyono, assessed that the relocation of the State Capital (IKN) to East Kalimantan would have a downward impact on the Jakarta economy.

This can happen because if the capital city moves, the level of ASN spending and household consumption will decrease. “Because the capital city has moved to Kalimantan, the level of consumption in Jakarta will decrease. The demand for goods and services will also decrease. This will cause the Jakarta economy to decline,” Mujiyono explained.

He assessed that other problems such as congestion, lack of clean water, and air pollution would still exist even though the capital city had been moved.

If Jakarta is “left behind”, this will cause government spending on services, hotels, consumption, and production sectors to drastically decrease. In addition, the supporting areas of Jakarta will also be affected. Because Jakarta’s economy is declining, the economy of the supply areas of Jakarta will automatically decline.

He added, “Business sectors will also be affected, especially those related to government partners, in addition to the service sector such as infrastructure providers, office space rentals,” he added.

Meanwhile, the draft law on the new capital city (RUU IKN) has been officially ratified into law at the DPR RI Plenary Meeting, Tuesday (18/1).

The relocation of the new capital city is planned for 2024, while the relocation of ASN and other government employees is carried out in stages

Jakarta after the relocation of the capital

Mulyono regrets that the government seems to be in a hurry to move the capital city, even though he thinks that the government has not optimally implemented the Jakarta Specialty Law as stated in Law No. 29 of 2007 concerning Provincial Government of the Special Capital City Region of Jakarta as the Capital of the Unitary State of the Republic of Indonesia.

He asked the government to optimize this law first because of Jakarta’s special status. According to him, Jakarta’s status must remain special and will not change because it is no longer the nation’s capital.

Deputy Chairman of the DKI Jakarta DPRD M Taufik said, “Even though Jakarta is no longer the capital city of the country, I hope the government will continue to make Jakarta a special area. Because if the status is the same as other regions, such as the existence of a district/city DPRD and a mayor who is elected by the people, it will cause difficulties. This is because of the limited area of ​​Jakarta.”