Economic Equitable Distribution Stifled by the Pandemic

The relocation of the nation\'s capital has been stifled by the pandemic. Meanwhile, the target of getting out of the middle class trap by 2045 is not expected to be achieved.

KOMPAS/ALIF ICHWAN

Visitors see the winners of the design competition for the new nation\'s capital. The Nagara Rimba Nusa design won the competition for the new state capital (IKN) in East Kalimantan which was announced at the Auditorium of the Ministry of Public Works and Public Housing, in Jakarta, Monday (23/12/2019).

JAKARTA, KOMPAS — Economic equitable distribution will hold back the decline in gross domestic product. However, special efforts and strong political economy commitment are needed to shift the economic structure outside Java.

Statistics Indonesia (BPS) recorded that the cumulative economic growth of the Republic of Indonesia from January to December 2020 was minus 2.07 percent. The structure of the economy in 2020 was spatially still dominated by the provinces in Java with a contribution to the gross domestic product (GDP) of 58.75 percent. Meanwhile, Java\'s economic growth was minus 2.51 percent.