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4 cities to be transformed into major metropolises in new plan to improve economic equality
Aside from the capital relocation, the government has also set its sights on transforming four regional cities into major metropolises, namely Palembang in South Sumatra, Banjarmasin in South Kalimantan, Makassar in South Sulawesi and Denpasar in Bali.
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City of Penajam District Penajam Paser Utara, East Kalimantan (JP/I Gede Dharma JS)
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n addition to building a new capital, the government plans to transform four regional cities into major metropolises with the goal of spreading economic activity beyond the busy island of Java and fostering new economic powerhouses, a minister had said.
National Development Planning Minister Suharso Monoarfa said the capital relocation would boost investment in East Kalimantan by 47.7 percent. East Kalimantan’s regional domestic product is expected to grow by 7.3 percentage points (ppt) and the multiplier effect is expected to contribute an extra 0.6 ppt to nationwide GDP.
Read also: New capital city to contribute little to Indonesia's economic growth: Indef
Aside from the capital relocation, the government has also set its sights on transforming four regional cities into major metropolises, namely Palembang in South Sumatra, Banjarmasin in South Kalimantan, Makassar in South Sulawesi and Denpasar in Bali, according to the draft of the 2020-2024 National Medium-Term Development Plan (RPJMN).
“Currently, Java and Bali contribute the most to GDP with 58 percent, followed by Sumatra with 21.79 percent,” Suharso said during a public hearing with the House of Representatives’ Commission XI that oversees financial affairs, on Feb. 4.
According to Statistics Indonesia (BPS), Java contributes 59 percent to GDP, while Kalimantan contributes 7.95 percent, Sulawesi 6.43 percent, Bali and Nusa Tenggara 3.06 percent, and Maluku and Papua 2.27 percent.
During the announcement of the location of the new capital in August 2019, President Joko ‘Jokowi’ Widodo said the location was chosen to promote an equitable and just economy.
