Friday, May 24, 2024 | 23:16 WIB

Reaching the dream in IKN

Jakarta, IO –Located in East Kalimantan Province, Nusantara, the new National Capital (IKN) of the Republic of Indonesia (NKRI), is currently in development and under construction. IKN development comes under Law Number 3 of 2022 concerning the National Capital (“IKN Law”), which was enacted and promulgated on February 15, 2022. Currently, IKN Nusantara development is in Phase 1, which involves building the infrastructure for the main government structures and their population, as well as relocating the first phase of Civil Servants (ASN). The 79th Indonesian Independence Day, on August 17, 2024, is to be celebrated in IKN Nusantara. 

In general, infrastructure development aims to positively impact economic growth and close the inequality gap. Prasetyo et al. (2013) found that social infrastructure development, such as schools and healthcare facilities, as well as telecommunications infrastructure, can increase Indonesia’s per capita income. Meanwhile, Bajar (n.d.), in research titled “The Impact of Infrastructure Provisioning on Inequality,” states that providing telecommunications infrastructure to connect people to economic activities and provide easy access can reduce economic inequality. In addition, vital infrastructure development, such as roads, also affects the community’s health and education levels, as road construction can facilitate people’s being mobile, traveling to school and accessing healthcare services. 

According to Prof. Dr. R. Rijanta, M.Sc., a professor in the Department of Development Geography, Faculty of Geography, Gadjah Mada University, stated on (April 29, 2024), IKN development provides economic opportunities as follows: “property development, infrastructure development, job opportunities, business and entrepreneurship development, industrial clusters and special economic zones, education and research institutions, tourism and hospitality, healthcare services, green technology and sustainability, as well as supply chains and logistics.” In other words, IKN development will create new job opportunities for the people within IKN Nusantara and those in surrounding areas, increase the area’s per capita income, productivity, innovation, competitiveness and other positive developments. 

As stated in Article 2 of the Law on IKN, IKN Nusantara has three visions it aims to achieve: (1) to become a sustainable city in the world; (2) to drive a future Indonesian economy; and (3) to become a symbol of national identity, representing the diversity of the Indonesian nation, based on Pancasila and the 1945 Constitution. The vision will be attainable by implementing eight principles of IKN Nusantara development: (a) Harmony with Nature; (b) Unity in Diversity; (c) Connectedness, Being Active, and Easy Access; (d) Low Carbon Emissions; (e) Circular and Resilient; (f) Safe and Affordable; (g) Comfortable and Efficient through Technology; and (h) Economic Opportunities for All. 

The first principle is that the IKN Nusantara in East Kalimantan Province is surrounded by protected forests, inhabited by indigenous communities; therefore, it must be developed in accordance with the surrounding natural conditions, by emphasizing sustainable practices in planning, considering the architecture and utilized materials, water management and its conservation, waste management and other crucial issues. IKN development must assure no environmental damage, impaired biodiversity or the loss of livelihoods for indigenous communities. 

The Ministry of Environment and Forestry (KLHK), the Ministry of Public Works and Housing (PUPR), the Ministry of State-Owned Enterprises (BUMN), associations, and relevant ministries and agencies must work together with the East Kalimantan Provincial Government and other provincial governments around the IKN Nusantara area to ensure that infrastructure development practices are in harmony with nature. 

Second, in building inclusive infrastructure, development must respect and preserve human rights and indigenous cultural values, which means the principle of “Unity in Diversity” must accommodate all of society, without exception, including indigenous communities, women, children, the elderly, people with disabilities, small and medium-sized enterprises (SMEs), and other vulnerable communities. 

Putu Rusta Adijaya
Putu Rusta Adijaya, Economic Researcher from The Indonesian Institute, Center for Public Policy Research

The Coordinating Ministry for Political, Legal, and Security Affairs (Kemenko Polhukam) and the Ministry of Law and Human Rights (KemenkumHAM) must ensure legal values and supremacy accommodating these principles are overseen by law enforcement agencies: the Indonesian Military or the National Police. KemenkumHAM can collaborate with relevant ministries and agencies, such as the Ministry of Villages, Disadvantaged Regions and Transmigration (Kemendes PDTT), the Ministry of Cooperatives and SMEs (Kemenkop UKM), the Ministry of Women’s Empowerment and Child Protection (KemenPPA), and others. 

Third, transportation access and mobility must be accessible, safe, comfortable, and economically affordable. The Government must carefully consider the development of roads and other supporting infrastructure, such as public electric vehicle charging stations (SPKLU) for electric buses and other electric vehicles, known to the public based on the policies and collaborative work of the Ministry of Public Works and Housing (Kemen PUPR), the Ministry of Industry (Kemenperin), the Ministry of State-Owned Enterprises (KemenBUMN), the Ministry of Finance (Kemenkeu), and relevant ministries and agencies.

Fourth, the Ministry of Industry (Kemenperin), the Ministry of Energy and Mineral Resources (ESDM), the Ministry of State-Owned Enterprises (KemenBUMN), the Ministry of Environment and Forestry (KLHK), and related ministries must collaborate with the Ministry of Finance (Kemenkeu) and the Financial Services Authority (OJK) to fund and build electrical infrastructure based on new and renewable energy sources (EBT). The infrastructure must also conserve and transform energy into electricity for economic activities. 

Fifth, for production needs, circular waste management that complies with established international standards must be provided, as outlined in the Sustainable Development Goals (SDGs). Toxic elements should not be improperly disposed of. The Ministry of Environment and Forestry (KLHK), the Ministry of StateOwned Enterprises (KemenBUMN), the Ministry of Public Works and Public Housing (KemenPUPR), the Ministry of National Development Planning (PPN), and others must meet “circular economy” objectives. 

Sixth, the Ministry of Public Works and Public Housing (KemenPUPR), the Ministry of National Development Planning (KemenPPN), and the Ministry of State-Owned Enterprises (KemenBUMN) must synergize with the Ministry of Finance (Kemenkeu) and the Financial Services Authority (OJK) to provide decent, affordable, inclusive, and equitable housing. 

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Seventh, the Ministry of Communication and Informatics (Kominfo), the Ministry of Finance (Kemenkeu), the Ministry of Education, Culture, Research, and Technology (Kemendikbudristek), the Ministry of Manpower (Kemenaker), associations and other industries engaged in technology and digital sectors must create a comfortable and efficient infrastructure and employ excellent human capital for the Nusantara Economic Corridor (IKN Nusantara). A collaboration between the mentioned ministries and the Coordinating Ministry for Economic Affairs (Kemenko Perekonomian), the Ministry of Finance (Kemenkeu), and relevant agencies will enhance and enable technology usage and innovation in IKN Nusantara. 

Finally, all elements of the Central Government, Provincial Government (PemProv), and District Government (Pemkab), down to the village level, must coordinate, collaborate, and synergize to create inclusive, fair, and equal economic opportunities for all elements of society in the Nusantara Economic Corridor (IKN Nusantara) and its surrounding areas.