IKN Development to Evenly Distribute Economy in Indonesia, President Jokowi Says

By Office of Assistant to Deputy Cabinet Secretary for State Documents & Translation     Date 21 September 2023
Category: News
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President Jokowi Thursday (09/21) attends the groundbreaking ceremony of the Nusantara Hotel in the Nusantara Capital (IKN) area, North Penajam Paser regency, East Kalimantan province. (Photo by: BPMI of Presidential Secretariat)

The development of the Nusantara Capital (IKN) is the Government’s effort to evenly distribute the economy in the country, President Joko “Jokowi” Widodo has said.

At present, Indonesia’s economy is centered mainly in Java island with gross domestic product (GDP) reaching 58 percent of the national GDP, he added.

“Java Island is a magnet for everyone in the country, all of them, all of them, mainly Jakarta. Therefore, this heavy burden must be reduced. From being Java-centric, we will make it to Indonesia-centric so that there will be an equal distribution of economic growth and an equal distribution of population,” the President said during the Groundbreaking Ceremony of the Nusantara Hotel, in the Nusantara Capital area, North Penajam Paser regency, East Kalimantan province. Thursday (09/21).

The President said that since last year, the Government has started the construction of the new capital, starting from the central government core area (KIPP), which consists of the Presidential and Vice Presidential Palaces along with basic infrastructure and ministry buildings.

“Most importantly, the basic infrastructure of water. Earlier, we have just closed the door of the Sepaku Dam, which will provide raw water for the people in the Nusantara,” the President said.

Another basic infrastructure currently under construction is the toll road connecting Balikpapan and the new capital, which is targeted for completion in the coming year. This infrastructure will shorten the travel time from Balikpapan to the new capital city from around 1.5-2 hours to around 30 minutes.

“The construction of the toll road from Balikpapan to the Nusantara capital has commenced. It will take us approximately 30 minutes from Balikpapan to the Nusantara capital,” he said.

Furthermore, the Government will also soon begin construction of an airport that can be accessed in approximately 15 minutes from the Nusantara Capital area.

“We also hope that in July, or early August at most, it can be completed,” he added.

The President expressed belief that the completion of road and airport infrastructure will attract more investors.

“Even before the completion [of these two projects], investors have already started to invest. Moreover, if these two projects are completed, there will be even more investors investing in the Nusantara Capital. There were 30 investors from South Korea a few months ago, as well as 40 investors from Japan and 120 investors from Singapore. They have come all the way here, surely they have calculated it, certainly they have calculated it. Yesterday, there were also investors from the United Arab Emirates and they immediately came to see me. What does it mean? They are interested,” the President said.

Not only those from overseas, the Government will also place priority on domestic investors. The President revealed that the construction of the Nusantara Hotel was made possible by domestic investors.

“This is what will become the locomotive which will lead the carriages behind it to the Nusantara. I am sure of that,” he said. (FID/UN) (FI/MUR)

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