Jakarta, CNBC Indonesia – Professor of the Faculty of Economics and Business, University of Indonesia, Prof. Emil Salim again criticized the government’s desire for President Joko Widodo (Jokowi) to move the country’s capital city (IKN) from Jakarta to East Kalimantan.
The criticism was conveyed by Emil when he met the invitation of the Coordinating Minister for Political, Legal and Security Affairs Mahfud MD virtually on Thursday (26/8/2021) night.
“I empathize with the Minister of Finance who is dizzy, but many of our friends in the (ministry) department don’t understand that spending is limited so that various expenditures such as buying weapons, state capitals and others run as if there is a lot of budget available, even though they don’t. ,” said Emil as quoted from a press release from the Coordinating Ministry for Political, Legal and Security Affairs received by CNBC Indonesia.
“This will complicate the management of state finances,” he added.
Emil is not the only one to criticize the IKN plan. Economists consider the new IKN plan to be rejected. There are various reasons that become the basis, from preparation problems, implementation at the wrong time to financing.
In April 2021, Emil narrowly explained several reasons. The first reason is Indonesia’s position which is still shackled by the COVID-19 pandemic. According to him, all elements of the government should focus on this issue, nothing else, including the relocation of the capital city.
“Covid-19 has had an economic impact and it’s not finished yet,” said Emil in a discussion with the Narasi Institute last April.
In addition, the issue that always arises in relocating the capital city is equitable development. Emil assessed that this would be difficult to achieve, because what would be built later was the capital city, not a business area. If there is a business area, it will be no different from Jakarta.
“Building the nation’s capital in the middle of the island, there is no guarantee that the development will be evenly distributed,” he explained.
Emil said that structurally, the Kalimantan area is a wetland. The pattern of development will be different compared to Java and Sumatra.
“How to build a city where it is a wetland? Kalimantan is a wetland ecosystem, physical building needs to take this into account. The cost needs to be considered,” he explained.
Financing is also in the spotlight. One of them is a swap plan between the government and the private sector. There is historical value in several Ministry offices, such as the Ministry of Foreign Affairs and the Ministry of Finance.
“The biggest dehistorical cost from the capital of the proclamation of the center of historical development will disappear and if it is replaced it becomes commercial,” said Emil.
As is known, Jokowi plans to make Kutai Kartanegara Regency and North Penajam Paser Regency the location of the new state capital. Jokowi himself conveyed this plan in his inauguration speech at the Plenary Session of the MPR RI, Parliament Complex, Senayan, Jakarta on October 20, 2019.
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