12 Economic Benefits of Transmigration in Indonesia

Indonesia is a country with the most populous population after China, India, Uni Sofiet, and the United States. Of the total population of Indonesia, 60% live on the island of Java and Madura which is only 7% of the total area of Indonesia. Therefore, the governments start to make some efforts to solve the problem. The work done is transmigration.

Transmigration is one of the government’s efforts to achieve a balance of population spread, expand employment opportunities, increase production, and increase revenue. In addition, transmigration also provides some positive energy for the economy in Indonesia. Here are the economic benefits of transmigration in Indonesia.

  1. Realizing the welfare distribution

The welfare distribution of the population is a major benefit of transmigration. Therefore, the government does not randomly choose the candidate for trans migrant members. There are several requirements that must be met as a qualified trans migrant.

One of the requirements is the candidate must have a good physical qualifications and productive skill. This indicates that transmigration aimed to decrease the rate of poverty. It also aimed to create equitable welfare for society.

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  1. Fulfill self-sufficiency of rice in Indonesia

Transmigration is considered a solution to empower Javanese farmers who don’t own agricultural land or own under 0.5 hectares of agricultural land. Transmigration is also regarded as the spearhead for achieving food self-sufficiency in particular producing rice. The opening of transmigration area is extended to West Kalimantan, South Kalimantan, Sulawesi and even Papua.

In 1984, Indonesia achieved self-sufficiency in rice with rice production reaching 25.8 tons. This success was awarded by the FAO (Food and Agriculture Organization of the World) in 1985.

  1. The rate of poverty would be decreased

The communities that become the members of trans migrants will be provided with capital to seek livelihood in their new place. This capital is an area land with full use rights and or cash. In addition, the allocation of time in the new place is also determined, so that the trans migrants can manage and control everything well.

With such regular planning and programming, transmigration proved to be quite effective in reducing poverty. Government intervention without impeding the creativity of trans-migrants would make it easier to reduce poverty.

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  1. The economy growth is not only centered in Java

In the beginning, economic development in Indonesia was concentrated only in Java, especially in Jakarta and its surroundings. This caused a gap between the islands of Indonesia. Since the establishment of transmigration, slowly but surely developments in Indonesia began to flatten to all islands in Indonesia.

The urban and rural areas of the island of Sumatra, Kalimantan, Sulawesi, and Papua began to be built in such a way. After the era of President Jokowi, Indonesia is actively building Indonesia from border areas and remote area.

  1. The increasing level income in agriculture

Transmigrant is educated not to be an employee of a company or to be a worker in a person’s land. They are trained to utilize the existing land to be planted with crops that crops can meet their daily dietary needs.

In addition they are also allowed to plant commodity crops such as coffee, rubber, or palm oil. This will certainly help increase crops in Indonesia. In addition, agriculture in Indonesia will increase its income.

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  1. Fostering entrepreneurial spirit

Transmigration is a strategic program promoted to create and develop entrepreneurial traditions among the community. If all this work is more identified with the profession of employees or workers, transmigration is one of the breakthroughs used by the government to change the mindset.

Of course, the government also does not mess with such a great goal because the transmigrants are not left alone. They get adequate training, sufficient capital, and a conducive environment to become an entrepreneur.

  1. The maximum of fertile land utilization

Empty land in certain areas or regions that have not been touched or un managed natural resources can be utilized. So to make use of it, the government imposed transmigration from a region whose population is already very crowded.

They are then transferred to areas where land has not been fully utilized. With transmigration policy, eating empty land use can be maximal.

  1. The development of suburban area in Indonesia

With the transmigration, remote areas will become crowded residents. Slowly but surely, the government will soon build remote areas of transmigration destination.

Local residents will also begin to set up some recreation areas, tours, shopping centers, and some economic centers in remote areas. Automatically, the development will be evenly distributed to all parts of Indonesia. For this reason, transmigration is being intensified by the government.

  1. Helping food self-suficiency

Transmigration also encourages food self-sufficiency. The effort is realized through the addition of the area of food agriculture in the form of extensification (yard area, business land I and land II) covering 8,081,969 hectares. The land if maximized properly will help to increase Indonesia’s food self-sufficiency.

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  1. Minimizing the rate of unemployment

Transmigration provides a real solution in the form of decentralization of population distribution. So, for those who have not settled in densely populated areas can earn jobs in sparsely populated areas. Trans migrants also received education and training around matters relating to employment.

They would even being educated how to become entrepreneur starts from preparation until production.

  1. Reducing Urbanization

Transmigration will help to reduce the rate of urbanization in Indonesia. The move from village to town will no longer be attractive because the government will only facilitate transmigration migration rather than urbanization. With the lure of capital and living decent living in the transmigration destination, people will be more interested in transmigration than urbanization.

Thus, the population density in the city will decrease.

  1. Supporting government program in non-oil and gas exports

Establishment of 391,559 hectares of plantation land and the development of a new agriculture-based production center, namely oil palm and rubber plantations. Most of these locations are spread in Sumatra and Kalimantan. The output is expected to exceed the needs of Indonesian rubber and palm oil. Thus, it can support the government’s effort to export non-oil and gas materials such as palm and rubber.

Those are the benefits of transmigration in Indonesia. Realizing that Indonesia grows step by step is such a pride for Indonesians. As the good citizens, you have to support the government program to support the economy life.