The Effect of Relocation the Country’s Capital on Poverty Rates Using System Dynamics (Case Study: Balikpapan City)

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Anzor 1,* Abdul Alimul Karim 1 Christopher Davito Prabandewa Hertadi 1

1. Industrial Engineering, Kalimantan Institute of Technology, Balikpapan, 76127, Indonesia

* Corresponding author.


Received: 24 Nov. 2023 / Revised: 15 Jan. 2024 / Accepted: 10 Feb. 2024 / Published: 8 Jun. 2024

Index Terms

Capital Relocation, Relocation Impact, Population, Poverty Rate, System Dynamics


The relocation of the country's capital has a significant impact on the economy of the surrounding cities and caused rapid population growth and at the same time does not improve the city's environmental and planning capabilities. Data from the Central Statistics Agency shows that in the ten years from 2010 to 2020, the population of Balikpapan City increased by around 130,739 people and poverty in Balikpapan City in 2019 reached 15,780 people and in 2020 it reached 17,020 people. as many as 688,318 people. The increase in the number of poor people is caused by many factors, starting from inflation, Human Development Index (HDI), education, labor, unemployment rate, Gross Regional Domestic Product (GRDP), and average per capita expenditure. Dynamic systems have two main elements, namely Causal Loop Diagrams (CLD) and Stock Flow Diagrams (SFD). This research aims to determine the impact of moving the capital city from Jakarta to Nusantara on poverty levels in Balikpapan. The results obtained are based on the research graph, namely that moving the country's capital has a significant effect on the poverty level in the Balikpapan city, moving the country's capital resulted in population mobilization and an insignificant increase in the number of births. Along with increasing opportunities and employment opportunities. Minimize this condition, several efforts can be made, namely by carrying out campaigns on the use of contraceptives and family planning programs to reduce birth rates, especially for people who are classified as poor, as well as providing training and expanding job opportunities for local workers.

Cite This Paper

Anzor, Abdul Alimul Karim, Christopher Davito Prabandewa Hertadi, "The Effect of Relocation the Country’s Capital on Poverty Rates Using System Dynamics (Case Study: Balikpapan City)", International Journal of Information Engineering and Electronic Business(IJIEEB), Vol.16, No.3, pp. 57-65, 2024. DOI:10.5815/ijieeb.2024.03.06


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