Indonesia transmigration areas could become new economic hubs

Economist Soner Bakaya, a professor at the University of Glasgow, suggests that transforming Indonesia's transmigration areas into new economic hubs is a strategic way to capitalize on shifts in global supply chains. Speaking at the Transmigration Executive Dialogue in Jakarta, Bakaya noted that Indonesia's strategic trade location, neutral political stance, and abundant natural resources—specifically nickel—position the country favorably for future industries.

To maximize these opportunities, Bakaya emphasized that investment must be paired with productive job creation, skill development, and support for local businesses. He argued that these regions require integrated logistics networks, agricultural processing centers, modern facilities, and access to financing to create a complete value chain. This approach would allow local communities to move beyond being mere raw material suppliers to participating in production, processing, and distribution.

Transmigration Minister Muhammad Iftitah Sulaiman Suryanagara stated that this perspective aligns with a new government paradigm that prioritizes economic activity and job creation.