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THE GOVERNMENT projects stronger growth of local economies as Indonesia advances the second phase of development for its future capital, Nusantara (IKN), in parts of North Penajam Paser and Kutai Kartanegara districts, East Kalimantan.
Deputy for Planning and Agrarian Affairs at the IKN Authority (OIKN) Mia Amalia said in North Penajam Paser on Saturday that the 2025-2029 development phase is expected to generate greater economic benefits not only for Nusantara but also for surrounding regions.
Citing an OIKN study, she pointed out that North Penajam Paser’s economy expanded by nearly 20 percent during the first development phase from 2022 to 2024, outperforming other districts and cities in East Kalimantan Province.
Amalia added that the provincial economy grew by around 3.7 percent during the period, supported by increased government spending and a surge of investments in the construction sector.
She voiced optimism that Nusantara’s development would further boost the regional gross domestic product, leading to sustainable growth for the city and neighboring regions.
Amalia said the positive trend has been driven by stronger local supply chains through construction activities, greater involvement of local businesses, and increased activity in supporting sectors.
According to her, the government is working under the Nusantara Economic Superhub framework to designate the future capital as a new epicenter of growth connected to surrounding regions, including the major cities of Balikpapan and Samarinda.
Amalia further noted that the approach forms part of a broader strategy to boost East Kalimantan’s economy as a whole through more productive sectors capable of generating sustainable economic growth.
The OIKN official went on to emphasize that the Nusantara project had evidently stimulated regional growth through intensified trade and increased demand for goods and services, logistics, accommodation, and transportation.
“IKN’s success is not just measured by the number of buildings but also by economic growth and benefits for local communities,” she concluded. [antaranews]
