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Benefits of IKN Development in Encouraging Economic Equality

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By: Vino Hasan Tanip )*

The development of the Indonesian Capital City (IKN) in East Kalimantan is one of the government’s major agendas that continues to be fought for despite facing various challenges. As a national strategic project, IKN not only functions as a new center of government, but also becomes a catalyst for equitable development and economy throughout Indonesia.

The commitment to maintaining the sustainability of the IKN development continues to be emphasized by stakeholders. The Head of the Indonesian Capital Authority (OIKN), Basuki Hadimuljono, stated that the development of the IKN and its accompanying investments will not stall. This is in line with the direct direction of President Prabowo Subianto who made the sustainability of the IKN development a national priority. This optimism is a strong signal that the government is serious about overcoming economic inequality between regions through the development of the IKN.

One of the fundamental issues that the IKN development is trying to solve is the development gap between Java and other regions in Indonesia. By moving the center of government from Jakarta to East Kalimantan, the government is trying to create a new growth center that can encourage more even economic activity outside Java.

Coordinating Minister for Economic Affairs, Airlangga Hartarto, emphasized that efforts to accelerate the development of the IKN continue to be carried out. One of the strategic steps is the submission of an additional budget of IDR 8.1 trillion in the 2025 Budget Implementation List (DIPA). The allocation of these funds shows the government’s seriousness in ensuring that the development of the IKN runs according to plan. Furthermore, this effort is designed to create a positive domino effect, starting from job creation to increasing public access to quality infrastructure.

In addition, the development of the IKN is in line with President Prabowo Subianto’s grand vision to accelerate economic equality. In the long term, the IKN is expected to be the main driver for the realization of a more inclusive economic transformation, where every region has equal access to opportunities and progress.

Deputy Minister of Public Works, Diana Kusumastuti, explained that the progress of 109 development packages in the IKN has reached 61.7 percent with a budget value of IDR 89 trillion. These projects include the construction of basic infrastructure such as roads, clean water, and energy which are the main foundations for the development of the IKN area in the future. Especially for the first batch, the progress has even reached 95.8 percent, reflecting the government’s enthusiasm in realizing this grand plan.

In its implementation, the development of the IKN is designed through five stages until 2045 with a total budget of IDR 466 trillion. This gradual approach not only allows for more effective budget management, but also ensures that the impact of development can be felt gradually by the community. This step reflects the government’s commitment to managing this strategic project sustainably without ignoring the interests of the surrounding community.

The development of the IKN also has great potential to attract domestic and international investment. The presence of the IKN as a new center of government is expected to create wider business opportunities, both in the construction, service, and technology sectors. The government continues to encourage private sector participation in the development of the IKN through the Public-Private Partnership (PPP) scheme which provides flexibility for investors to contribute.

The development of the IKN will also bring direct benefits to the local community, especially in East Kalimantan. The increasing need for labor for various development projects has opened up new jobs, which directly supports local economic growth. In addition, community access to modern infrastructure in this area will significantly improve the quality of life.

With the development of the IKN, the government sends a clear message: development is no longer concentrated on Java Island. The development of the IKN is a symbol of commitment to fixing regional inequality that has long been a fundamental problem in Indonesia. In the long term, the existence of the IKN as a new center of government will strengthen integration between regions, create new growth centers, and accelerate the progress of the national economy as a whole.

Although the development journey is still long, the collective efforts of the central government, local governments, and the community are the key to the success of this project. As a nation, we have a shared responsibility to support the realization of the IKN as part of the vision of a more just, prosperous, and sustainable Indonesia.

The development of the IKN is not just an infrastructure project. This is a big step towards better economic equality for all Indonesian people. In this effort, let us fully support the government to continue the development of the IKN according to plan. With the spirit of mutual cooperation, we can ensure that this project is not only successful, but also provides real benefits for future generations.

IKN is a new hope for Indonesia, a golden opportunity to create real change. Let us be optimistic that IKN will be a catalyst towards a brighter, fairer, and more sustainable future for Indonesia.

)* Member of the Love of the Country Youth Community from Kalimantan

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