Minister Iftitah Affirms Transmigration Areas Must Become Hubs for Investment, Downstreaming, and New Economic Centres

The government has affirmed that transmigration areas are now being directed to become new economic growth centres capable of attracting investment, developing industry, strengthening downstreaming, and supporting national food and energy security. These areas are no longer merely residential zones and agricultural centres. Minister of Transmigration M. Iftitah Sulaiman Suryanagara stated that each transmigration area possesses distinct comparative advantages and strategic potential. He cited Samboja in Kutai Kartanegara Regency, which has oil and gas potential. Meanwhile, transmigration areas in South Kalimantan, as well as Aceh Besar and Aceh Barat, hold coal reserves, and the transmigration area in Mamuju, West Sulawesi, contains rare earth elements, which are crucial raw materials for the modern technology industry. “The era when transmigration was viewed solely as an agricultural area is over. Agriculture remains an important foundation, but transmigration areas today must also become homes for investment, industry, downstreaming, and new economic growth centres for Indonesia,” the Minister said in Jakarta. He explained that this transformation aligns with President Prabowo Subianto’s directive to build new economic growth centres through industrialisation, downstreaming, and the creation of quality jobs across various regions. “We are no longer talking only about agriculture. There are plantation sectors, processing industries, tourism, oil and gas, coal, rare earth elements, and various other strategic economic potentials that must be developed according to each region’s advantages,” he said. Consequently, the development of transmigration areas is now being carried out with a different approach. The government’s focus is no longer merely on opening land or relocating people, but on building an investment ecosystem that can create added value, expand job opportunities, and improve community welfare. One example of this transformation is currently underway in the Barelang area of the Riau Islands. The Ministry of Transmigration, together with the Batam City Government and the Batam Indonesia Free Zone Authority (BP Batam), continues to strengthen collaboration to create a more conducive investment climate so that the area can develop as a new industrial centre. “Investors do not need many promises. What they need is an ecosystem that provides certainty. When that ecosystem is built, investment will come, industry will develop, jobs will be created, and the community will be the party that benefits the most,” Minister Iftitah explained.