IKN Will Encourage the Acceleration of Economic Growth, Develop Regional Economies and Create Million of Jobs

Minister Suharso: IKN Will Encourage the Acceleration of Economic Growth, Develop Regional Economies and Create Million of Jobs.

The Minister for National Development Planning received a visit from Kompas journalists regarding the interview with the New State Capital on Tuesday, March 2, 2021. In the interview, the Minister conveyed several things.

At the beginning of the interview, the Minister said that IKN encourages the acceleration of economic growth through 6 economic clusters and 2 supporting clusters. The IKN will develop the regional economy by 4-5 times to USD 180 billion, and the IKN will create 4.3-4.8 million jobs in East Kalimantan by 2045.

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Furthermore, the Minister explained that the State Capital is a Superhub, a Superhub IKN is locally integrated, globally connected, and universally inspired. First, Superhub is a universal inspiration. Superhub which is a role model as a city that is green, sustainable, and has a high standard of living in the midst of the challenges of climate change by using technology.

Second, Superhub and the world, is Superhub which help position Indonesia in a more strategic position in world trade routes, investment flows and technological innovation.

Third, Superhub and Indonesia, is Superhub, which changed Indonesia's economy to be more inclusive through the Three Cities strategy, by becoming an economic driver for East Kalimantan and a trigger to strengthen domestic value chains throughout Eastern Indonesia and throughout Indonesia.

After conveying this, the Minister stated that the construction of houses and offices at IKN would have a positive impact on the national economy.

"The construction of houses and offices at IKN will increase the rate of economic growth by 0.2% basis points per year on average," said the Minister.

The minister is optimistic that other provinces will also experience positive economic impacts due to property development in East Kalimantan.

"The calculated economic impact only comes from the construction of houses and offices. The economic impact will be greater if it includes other infrastructure development, "he said.

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The minister added, apart from the construction sector, other sectors will also experience increases such as cement, transportation, metal products, and other industries such as the paint industry.

"Cement for development in East Kalimantan will be supplied by Provinces in Kalimantan, Central Sulawesi and South Sulawesi," continued the Minister.

According to the Minister, construction activities in the property sector will increase economic activity in the Province of East Kalimantan, where the flow of trade within the province of East Kalimantan or Intra Trade will increase.

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