Thursday, 17 October 2019

Indef: Capital City Relocation Potential to Increase Social Gap

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Laila Afifa

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  • TEMPO.CO, Jakarta - An economist at the Institute for Development of Economics and Finance (Indef) Bhima Yudhistira Adhinegara reminded the government that the capital city relocation to Kalimantan is potential to increase social gap among the locals since those who will be moved are part of Jakarta's middle-class society.

    "There will be a gap between civil servants (PNS) with a higher salary and the locals who mostly work in commodity sectors such as palm and coal," Bhima said in South Jakarta, September 11.

    In addition, the current commodity price is pressed due to the slowing down of global economy. The condition will also press people's purchasing power.

    Therefore, he went on, the potential of the economic gap resulted from capital relocation is high, which will also threaten to increase the Gini ratio index.

    Bhima was worried that the big gap will trigger the crime rate. "It will even be more complicated than the current condition in Jakarta," he said.

    He also argued that the development of the new capital could affect the regional economy. According to an Indef study this year, capital development will merely support East Kalimantan economy.

    Dias Prasongko