Relocate Capital City of
Indonesia :
The Effect towards
Winning’s Indonesia Business and as a Group
Its official !!!
The Draft Bill
of Capital Relocation is signed on January and we will have a new capital named
“Nusantara” (means ‘archipelago’). The plan of relocation is not a new thing
for Indonesia. There have been some talks about moving the capital since 1957.
The consideration at that time was location, as its far more extensive, and
considerably safe from earthquake and volcanoes. Nevertheless, the reasons of
moving at time being was far than just locations. It is strongly due to the
safety, Jakarta’s overpopulation and environmental problem.
The chosen
location is in East Kalimantan - an area
between North Penajam Paser Regency and Kutai Kartanagara. This has also underlined
the fact that the Capital is NOT Java-centric. Geographically, its located in
Kalimantan – an Island crossed by the Equator and not part of the volcanoes
ring of fire. It is definitely far less populated than other big cities in
Java, not to mention Jakarta itself.
Moving a capital is such a big issue. It carries enormous symbolic importance that one can imagine. Wealth distribution, geopolitics or more over, we may call it as equal distribution to the people.
Jakarta has many problems after years of
massive development but lacked of proper arrangement as it has notorious
congestion and repeatedly suffer from flood, without being underestimating but
it is no longer a convenient place nor proper place to be called as a capital.
For Nusantara,
the government is talking about of USD 33 billion for the projects – which will
be funded not only by the government budget but also from the mixture of
state-owned enterprises, public private partnership and private sectors. The
new Capital first stage which is reforestation follow by basic infrastructure.
The process will start this year and expect to be completed in 2024, before the
election.
No one dare to
say that it is an easy move. Moving the central government from one city into
another, will have a huge impact sociologically to those who need to moved to
the new place. It is estimated that at least around 10 thousand of state
employees (with thousands more when we count their families) will have their offices
in the new Capital. The process moving itself is expected to be completed at
year 2045.
Meantime,
Jakarta stays as Centre of Business, whilst most of the Ministry will be in the
new Capital – over 2000 km away. And then, what will the plan be for the former
capital? They said that since Jakarta will remain as Centre of Business, the
local administrative government will focus in 3 (three) things which are public
transport, public housing and flood preventive plan. We are yet to hear the
plan before end of this year.
Another
question raised from private companies, whether the plan will help boosting the
business, or the other way around. To be clear, that businesswise, it will
surely have impacts. We have received confirmation that Department of
Transportation and Ministry of Finance will only move their Head Office in the
2nd batch, which is from year 2025 – 2029, both functional and
essential departments. What about the supporting body such as Investment
Coordinating Board, Central Banks and other Financial Institution?
Currently, most
of the Ministries already have a so-called one-door integrated service, to cut
the bureaucracy. It administered and coordinated by BKPM – Investment
Coordinating Board. The one-door integrated service, or PTSP is an activity of
administering a permit and non-licensing that receive delegation of authority
from the agency that has the authority whose management process starts from the
application stage to the stage of document issuance which is carried out in one
place. In total, there are 25 permit & non-permit that can be arrange
through this. During the pandemic, most were done through online application. BKPM
itself, along with several Financial Bureaus will stay in Jakarta.
Ministry of
Transportation – Department of Sea Transport would likely take the 2nd
stage of moving their office to the new Capital. So far, they are working to
make most of the permit release and extension, include certificates through
their online system. During the pandemic, they have released a few policies
related to the current condition and arrangement.
Like any other
Logistic companies, we dealt with the two Ministries at the most. The new
system that applies online – and the one-stop integrated services are not 100%
better compare with the old system. However, it surely cut the line and direct
interactions like in the old days. The biggest challenge for us as a
corporation is to cope with the current regulations and prepared for some
changes that may occur – starting from regulations, change of officers, change
of authority and perhaps many more.
Trying to look
at the bright side of the story, changes is a constant movement, and Winning
experiences it all the time. Lets be adaptive,
do the best we can and make it happen – a Winning Way !
Note : The article is published in Wining In-house Magz, with some edited wordings.
Credit belongs to Winning Group - not to be republished commercially.
