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DPRD Jakarta laments economic effects from new capital city move

Tempo - January 20, 2022

Eka Yudha Saputra, Jakarta -The Jakarta Regional Legislative Council (DPRD Jakarta) Commission A speaker Mujiyono on Wednesday assessed that the capital city move from Jakarta to East Kalimantan will inflict a negative impact on Jakarta's economy. However, he believes other common issues regarding the city will remain such as traffic congestion and air pollution.

The economic effect will be caused by the reduced state apparatus (ASN) spending and household consumption, which will have a domino effect, according to him.

"In terms of ASN and household spending, the move to East Kalimantan will automatically reduce the two aspects. It will cause a drop in demand for goods and services in Jakarta," he wrote in a statement on Wednesday, January 19.

The reduction of government administration spending in the services sector, hotels, catering, and production. These aspects are aspects that support government-related activities.

The DPRD speaker said Jakarta's satellite cities such as Bogor, Depok, Tangerang, and Bekasi will be affected by the capital city move.

"Supply of workers and goods for Jakarta are sourced from a number of provinces in Java and Sumatra. The new capital city move will surely affect these regions," he added.

However, he believes aspects synonymous to Jakarta such as traffic congestion, air pollution, and water crisis will stay as central government activities only constitute 10 percent of Jakarta's activities.

Source: https://en.tempo.co/read/1551971/dprd-jakarta-laments-economic-effects-from-new-capital-city-mov