The relocation of the capital from Jakarta to IKN, what are the impacts?

by Redaksi

The relocation of the national capital from Jakarta to the new Ibu Kota Negara (IKN) is a significant step in Indonesia’s history. According to Fithra Faisal Hastiadi, PhD, a senior economist at Samuel Sekuritas and a lecturer at the Faculty of Economics at the University of Indonesia, this change has several important implications for Jakarta, both in the short and long term.

In the short term, Fithra Faisal believes that the impact of this relocation will not be very significant for Jakarta. The main concern among economic players in Jakarta is the potential loss of economic activity as the capital moves. However, Fithra Faisal reassures that Jakarta will maintain its position as the main business hub in Indonesia. This is due to Jakarta’s already well-established and sufficient infrastructure, ensuring that the city will continue to function as the dominant business center.

The changes that may occur are more administrative in nature. There might be administrative adjustments, but their impact on Jakarta’s economy will not be immediately significant.

Looking ahead, the larger challenge is how to maintain Jakarta’s relevance as a business and economic center after the capital has moved. Although Jakarta will no longer be the national capital, Fithra Faisal believes that the city has the potential to remain a major business hub, like other global cities like New York, Los Angeles, Melbourne, and Sydney. These cities are no longer the capitals of their respective countries but are still recognized as important business and economic centers.

To sustain and enhance Jakarta’s relevance, efforts need to be made to build and strengthen business and economic centers within the city. Both the government and the private sector need to collaborate to ensure that Jakarta remains attractive to investors and business players. Developing infrastructure, implementing policies that support business growth, and promoting Jakarta as an international business hub are some of the steps that can be taken.

Overall, while the relocation of the national capital to IKN will bring changes, Jakarta still has the strength to remain Indonesia’s main business hub. Fithra Faisal Hastiadi emphasizes that there should not be excessive fear that Jakarta will lose its position. With its established infrastructure and ongoing efforts to maintain its relevance, Jakarta will continue to be an important center of discussion and business in the future.

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