The Impact on The Relocation of Ibu Kota Negara (IKN) Indonesia to The State of Sarawak
Abstract
The relocation of the capital city from Jakarta to Kalimantan signifies a significant milestone in the historical trajectory of Indonesia, exemplifying a strategic choice that carries extensive implications. The present ambitious undertaking, motivated by the imperative of achieving sustainable growth and mitigating the issue of congestion in the existing capital, gives rise to inquiries regarding its prospective ramifications on adjacent areas. The possibility of an impact on Sarawak, a Malaysian state located within a short distance of the planned new capital, is of significant importance. The main objective of this study is to analyze and explain the economic sectors involved in the migration of Jakarta to Sarawak, with a specific emphasis on industries. An extensive analysis is required to understand the potential impact of the capital move on regional dynamics, trade patterns, and socio-economic landscapes, given the close geographical proximity between Sarawak and the new capital. This study is an exploratory study from primary sources. It carries out an analysis through reference to official documents, especially on national policy, official reports, and official statements involving Sarawak and all relevant agencies. This research gives valuable insights into the various aspects of the relocation process, providing an important contribution to the broader academic discourse on regional growth and the potential cross-border consequences. This study seeks to provide valuable insights for policymakers, urban planners, and stakeholders in Indonesia and Malaysia as they navigate the transformative processes associated with the move of capital.
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