Antara News·Indonesia·Tuesday, August 25, 2026 at 05:13 AM

Transmigration areas can power Indonesia's new economic hub: Economist

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Aria Ananda, Resinta Sulistiyandari

Jakarta (ANTARA) - Developing transmigration areas into new economic hubs is an effective strategy for Indonesia to capture opportunities created by shifts in global supply chains, according to University of Glasgow economist and professor Soner Bakaya.

He believes Indonesia occupies a favorable position due to its strategic trade location, abundant natural resources, and relatively neutral political stance.

"Indonesia's current position is highly favorable, with a relatively neutral political position, strategic trade routes, and important natural resources such as nickel, which are crucial for future industries," Bakaya said in a statement on Tuesday.

Speaking at the Transmigration Executive Dialogue (TED) in Jakarta on Monday, he said these conditions make the transformation of transmigration areas increasingly relevant amid global economic and geopolitical shifts.

He described the new approach to transmigration as the right program at the right time.

According to him, these opportunities could generate broader economic gains if investment in transmigration areas is accompanied by productive job creation, skills development, local business growth, and improved access to industries and markets.

Transmigration areas also require support from agricultural processing centers, logistics networks, modern facilities, financing access, and an innovation ecosystem to generate greater regional added value.

With a more comprehensive value chain, local communities will not only serve as raw material suppliers but also benefit from production, processing, distribution, and marketing activities, Bakaya emphasized.

Additionally, farmers and micro, small, and medium enterprises (MSMEs) have the opportunity to secure technology, financing, business partners, and broader market access.

Transmigration Minister Muhammad Iftitah Sulaiman Suryanagara stated that this perspective aligns with the government's new paradigm, which prioritizes economic activity and job creation before population movement.

"The future of transmigration is not about moving people and hoping economic opportunities would follow. We must create economic opportunities, prepare decent jobs and lives, and then allow population mobility to follow voluntarily, safely, and with future certainty," he remarked.

He conveyed that transmigration areas are set to become economic ecosystems connecting communities, land, science, technology, investment, industry, and markets.

This ecosystem encompasses the entire value chain, including research, nurseries, production, processing, packaging, logistics, and marketing.

Suryanagara cited China's durian consumption, estimated at around Rp137 trillion (US$7.5 billion) annually, as an opportunity to build an industrial ecosystem for the commodity in Indonesia rather than exporting raw materials.

The new transmigration paradigm is being executed through five flagship programs: Trans Tuntas for land legal certainty, Trans Lokal for local community empowerment, Trans Patriot for strengthening human resources and technology, Trans Karya Nusantara for investment and job creation, and Trans Gotong Royong for strengthening stakeholder collaboration.

To bolster regional human resources, the Ministry of Transmigration plans to deploy 1,476 Patriot Expedition Team (TEP) participants across 246 teams to 53 transmigration areas in 2026.

The 53 locations comprise 41 national priority areas, two ministry-designated priority areas, and 10 locations in Papua.

The TEP 2026 cohort includes 39 professors, 158 doctoral degree holders, 263 master's degree graduates, and 1,016 undergraduates, tasked with following up on regional potential mapping through research, mentoring, and technology application.

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