Munich Personal RePEc Archive

Relocation of capital city: contemporary research on impact on Borneo’s economy

Kurnia, Arif (2020): Relocation of capital city: contemporary research on impact on Borneo’s economy.


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economy refers to the economy in the island of Borneo. Borneo island politically administered by three countries which are Malaysia, Indonesia and Brunei. There are two states of Malaysia located in Borneo and they are Sabah and Sarawak. For the Indonesian side, there are five provinces in Kalimantan, Borneo. They are North Kalimantan (KALTARA), East Kalimantan (KALTIM), Central Kalimantan, South Kalimantan and West Kalimantan. The market size is reported to be over 20 million population for the whole of Borneo. Economy of Borneo has a huge potential if being fully utilized and integrated. Good road, sea and air connectivity within Borneo has the potential to stimulate and enhance economic interaction within Borneo. Recent announcement made by Indonesian government to shift capital city to Kalimantan indeed gives a lot of hope to Kalimantan and neighboring countries. A preliminary survey involving 50 individuals in North Kalimantan was undertaken to understand the view of various stakeholders. The findings in general find that the capital city relocation has the potential to benefit North Kalimantan at least in the long run. It also has the potential to produce positive effects on neighboring provinces and nearby states.

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