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Continuation of IKN Development in President Prabowo Era Boosts Economic Growth

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By: Gavin Asadit )*

The development of the Indonesian Capital City (IKN) located in East Kalimantan continues to be the main focus of the national development agenda, especially after the leadership of President Prabowo Subianto. His government is committed to continuing the development of this major project. IKN is projected to not only change the face of Indonesia physically, but also generate significant economic growth, both for local communities and the national economy as a whole.

Deputy Minister of Public Works (PU), Diana Kusumastuti said that President Prabowo is committed to continuing the development of the IKN in accordance with the long-term development vision that has been planned since the previous administration for the sake of modernizing national infrastructure. Minister of PU, Dodi Hanggono also said that his party will focus on maintaining and improving several parts of the development project that require adjustments to be in line with President Prabowo’s vision.

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Meanwhile, President Prabowo remains committed to continuing the IKN project with various adjustments to accelerate development. One of the stronger emphases in government policy is job creation and infrastructure development that can drive the economy in the region. This is reflected in the government’s commitment to completing the development of basic infrastructure such as roads, bridges, and public facilities that can support mobility and economic activities.

President Prabowo’s decision to continue supporting the IKN by focusing on aspects of empowering local communities and developing new economic sectors is a breath of fresh air for the people of East Kalimantan. As conveyed by the former Governor of East Kalimantan, Isran Noor, the development of the IKN has had a positive impact on increasing regional economic activity.

The IKN development project, which is currently underway, not only has a direct impact on the construction sector, but also drives the economy in various other sectors. One of them is the MSME sector which feels a significant impact from the presence of this large project. Local MSME actors now have the opportunity to provide various needs, be it building materials, food, or other logistical needs for workers and project developers.

Researcher of National Research and Innovation Agency (BRIN) Bahtiar, stated that the sustainability of this project is believed to be able to increase the competitiveness of the Indonesian economy, especially with the opening of new economic centers in the central and eastern regions of the country. In addition, the development of IKN can also accelerate the distribution of the economy which has tended to be centered on Java Island. With the existence of IKN, areas in Kalimantan and its surroundings can become new economic centers.

On the other hand, according to data collected by the local government, the service and trade sectors are two sectors that have experienced significant increases. The government also encourages business actors to take advantage of this opportunity through training and empowerment programs, which aim to increase the capacity and quality of their products so they can compete in a wider market.

With the continued availability of jobs, both in the construction sector and other supporting sectors, the unemployment rate in East Kalimantan is expected to continue to decline. President Prabowo’s commitment to ensuring that local communities are actively involved in this development is also reflected in the policy that prioritizes the use of labor from the surrounding area. This is a concrete step to ensure that the economic benefits of the IKN are not only felt by outsiders, but also by the local community.

Infrastructure development carried out in the IKN area also opens up new opportunities for other sectors, such as transportation, logistics, and tourism. It is hoped that with the increasingly developing IKN, the East Kalimantan region will become one of the new centers of economic growth in Indonesia.

One of the main infrastructure projects currently being implemented is the construction of a toll road connecting the IKN with the buffer areas of the nation’s capital in Kalimantan. This development is expected to improve regional connectivity, facilitate the distribution of goods, and facilitate access for tourists who want to visit the area. If everything goes according to plan, in the next few years, the IKN area can become one of the regional economic centers that has high investment appeal.

In addition, the IKN project is also seen as an opportunity to develop the renewable energy sector. In recent years, Indonesia has committed to reducing its dependence on fossil fuels and switching to more environmentally friendly energy. East Kalimantan, with its abundant natural resource potential, is expected to become one of the centers for renewable energy development that supports the needs of the IKN and its surroundings.

Not only talking about infrastructure development, President Prabowo also emphasized the importance of sustainability in managing the development of the IKN. On various occasions, he emphasized the need to maintain a balance between development and environmental preservation. The development of the IKN, which is based on the concept of a smart and sustainable city, is expected to not only create a new economic center, but also create a better and greener life for the community.

The development of the IKN brings a breath of fresh air to the Indonesian economy, especially East Kalimantan. With a strong commitment to accelerate infrastructure and involve local communities in various aspects of development, the IKN project is not only a symbol of political change, but also an important driver for more inclusive and sustainable economic growth.

Through this policy, the Government seeks to ensure that the development of the IKN does not only benefit a handful of parties, but provides broad benefits to the Indonesian people. It is hoped that the continuation of the development of the IKN will be a new milestone for the Indonesian economy in the future.

)* The author is an observer of social and community issues

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