Written by: Athifah and Syachidah Riskha Aisyah
International Relations, Mulawarman University
Introduction
The city of Jakarta became the capital city of Indonesia as officially stipulated in the 1964 Law (Hutasoit, 2018). Since the designation of Jakarta as the capital city, the city has experienced rapid development in both economic and infrastructural aspects, making it the central hub for government administration, business, economy, as well as domestic and international development (Herdiana, 2022). As a result, many people have migrated to Jakarta, leading to an increasing population density. The high population numbers in Jakarta can potentially give rise to negative societal issues, such as sanitation problems and even increased criminal activities (Maulinda & Jaydy, 2023).
Based on various negative developments occurring in the capital city, the President of the Republic of Indonesia has put forth the idea and concept of relocating the national capital from the Jakarta region to East Kalimantan. The relocation of the capital is expected to serve as an alternative solution to population-related issues in Jakarta, aiming to achieve a more balanced development, especially in the eastern part of Indonesia (Herdiana, 2022).
The approval of the new capital city located in Penajam Paser Utara and Kutai Kartanegara undoubtedly opens up more potential for foreign parties to enter these two regencies. This is evidenced by the funding for the development of the Nusantara Capital City (Ibu Kota Nusantara, IKN), a portion of which comes from foreign investors. Approximately 54% of the IKN development budget is recorded to originate from Public-Private Partnerships (Kerja Sama Pemerintah dengan Badan Usaha, KPBU), which includes foreign investors. The estimated value of the IKN development budget through KPBU is around IDR 253,4 trillion. At first glance, the involvement of foreign entities in IKN may seem beneficial for Indonesia, especially in terms of the local economy. However, we cannot turn a blind eye to potential threats that may arise in the future.
Discussion
In this modern era, the cycle of cultural transformation from foreign cultures into local ones and the rapid growth of transnational cooperation are occurring due the activities of globalization. Princeton N. Lyman defines globalization as the very rapid growth and interdependence among various countries worldwide in terms of trade and finance. The term globalization is used to describe the process of instant global communication, the growth of international trade, and the global money market (Peter Drucker).
Globalization accompanied by easy access to transportation and communication in this modern era, has significantly influenced the formation of multicultural societies. With advanced transportation, people from all concerns of the world can easily travel to other parts of the globe. This in turn facilities migration and interaction among citizens. Not exempt from the impact of globalization, Indonesia also experiences intense interaction with foreign entities as one of its consequences. The officially designated relocation of the new capital city of Indonesia in 2018 has also garnered attention. Many question the impact of globalization on the socio-cultural development in Nusantara Capital City (Ibu Kota Nusantara, IKN). The following are some of the impacts of globalization on IKN.
The existence of IKN brings positive effects for investment in East Kalimantan. It is recorded that there is a significant increase in investment realization at the first quarterly, January to March 2023 reaching 23,91%. The relocation of the new capital city creates a lot of new opportunities for East Kalimantan. In order to push the development of investment, the government of East Kalimantan with stakeholders have committed to be active in the first planning and promoting investment opportunities. The new capital city also gives positive effects to the locals of Penajam Paser Utara regency, because they will have a better life followed by the development of human resources by empowerment .
Foreign investment in IKN will cause the domination of natural resource management including public natural resources. Foreign investment also brings up oligarchic monopoly so their party will decide the marketplace including deciding the price and creating the price. This thing will affect the economic gap and social-society problem. Where the rich get richer and the poor get poorer. Beside, in socio-cultural there is a threat about our culture that slowly fades and is replaced by the new culture. This of course became a serious topic because we don’t want to see our local culture get erased by globalization.
Conclusion
The relocation of the capital city from the Province of DKI Jakarta to the Province of East Kalimantan is a breakthrough initiated during the administration of President Joko Widodo. This relocation has several reasons, such as the impracticality of Jakarta to continue serving as the capital and the aim to distribute development to the eastern part of Indonesia. In the 21st century, it is undeniable that the pace of globalization spreads widely and becomes a trend among global communities. Therefore, the impact of globalization on the relocation of the IKN can give rise to both positive and negative consequences.
The post The Impact of Globalization on Multiculturalism in the IKN appeared first on JurnalPost.
