IKN Nusantara, the new capital city of Indonesia, is expected to boost the economy of East Kalimantan. The project is still under construction and scheduled to be inaugurated in 2024. The development of IKN is accompanied by preparations to support social transformation and infrastructure, including roads as the new infrastructure will help boost its economy.
The presence of IKN is expected to boost the economy and enliven the market of East Kalimantan. Businesses, such as Rumah Ampiek Batik, are already preparing to expand their business and offer local products such as Batik Balikpapan, souvenirs, and other unique products. The positive impact of IKN on the local economy has already been felt by Rumah Ampiek Batik, which has seen an increase in economic activity and a busy market. UMKM businesses will also benefit from the economic growth that IKN brings.
IKN's development will provide opportunities for local businesses, such as food vendors and those who provide accommodations to workers, to benefit from the economic growth. Once IKN is established, it is predicted that the economic disparity between Java and Kalimantan will decrease, and East Kalimantan's GDP will grow, potentially surpassing Java's. Infrastructure development will also have a positive impact on economic growth, as it improves mobility and makes it easier to conduct trade.
The continued development of IKN is expected to drive economic growth in East Kalimantan, including investment growth. Investments in East Kalimantan have increased, with growth recorded at 8.32% in the fourth quarter of 2022, higher than the previous quarter's growth of 5.90%. Although the growth rate may slow slightly in the first quarter of 2023 due to seasonal factors such as rain and coal production, the continued development of IKN is expected to drive positive economic growth.
