In front of Japanese business players. Gobel: Don't hesitate to invest in IKN
This article has been translated by PwC Indonesia as part of our Indonesia Infrastructure News Service. PwC Indonesia has not checked the accuracy of, and accepts no responsibility for the content.
Investor Daily - Di hadapan pengusaha Jepang. Gobel: Jangan ragu investasi di IKN
2 March 2023
House of Representatives (DPR) Coordinator for Industry and Development Deputy Speaker Rachmat Gobel is gathering Japanese business players who are members of Keidanren to explain the development of Nusantara Capital City (IKN) in Kalimantan.
“The Japanese business players do not need to hesitate to participate in IKN development,” he explained in Tokyo on Tuesday (28/2/2023).
He delivered this statement at the meeting among Indonesian delegates and Japanese business players who are members of Keidanren. From Indonesia, besides Gobel, Transportation Minister Budi Karya Sumadi, Human Settlements Director General of the PUPR Ministry Diana Kusumastuti, and IKN Authority Deputy Chairperson Dhony Rahakoe also attended. Meanwhile, DPR members who attended were Ary Egahni Ben Bahat, Novita Wijayanti, and Kamrussamad. They accompanied Indonesia’s Ambassador to Japan Heri Akhmadi.
Gobel said that the capital city relocation and IKN development are fully supported by DPR with regulatory, political, and budget supports. Besides that, he said that the capital city relocation is carried out to organise regional governance to be modern and sustainable. It is also expected to be a role model for the management of other regions in the country. The legislator from Gorontalo added that stakeholders have learned from the pandemic in 2020. At the time, many people struggled due to the economic inequality among regions. “Hence, after the Covid pandemic, the President wants to boost economic equality,” he said.
Gobel explained that the idea to relocate the capital city was once proposed by President Soekarno and President Soeharto. At the time, Soekarno considered several regions, including Palangkaraya in Central Kalimantan. Meanwhile, Soeharto considered to relocate to Jonggol in West Java. Now, the idea is realised by President Joko Widodo who chose North Penajam Paser in East Kalimantan.
He said that the relocation to East Kalimantan will have significant impacts. Firstly, it will create economic equality, especially in eastern Indonesia in Kalimantan, Sulawesi, Maluku, Papua, and Nusa Tenggara. Until now, construction has been more developed in Sumatra, Java, and Bali. Then, it will reduce demographic, ecological, and social burdens in Jakarta and Java. Jakarta is too populated. Jakarta’s population density reaches 15,978 people/km2. East Java, which is its neighbour, has a population density of 1,379 people/km2. Meanwhile, Indonesia’s average population density is only 142 people/km2. The population density in Jakarta causes air pollution, water pollution, as well as noise pollution. The crime rate and other social issues are also high.
Next, this capital relocation will also increase economic growth. Until now, economic growth has been centred on major cities in Java and Sumatra. This capital city relocation will create new economic growth centres. “Gorontalo, which is where I came from, will be one of the provinces that is affected by the capital city relocation,” he said. Gobel added that, in 2045 on its 100th anniversary, Indonesia will be an advanced and prosperous country.
