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IKN Development Stimulates Economic Growth in Kalimantan

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Jakarta – The development project of the Indonesian Capital City (IKN) continues to be a major topic in national discussions, especially in relation to the potential for economic growth in Kalimantan. As one of the national strategic projects, the development of the IKN is expected to not only represent a new vision for Indonesia, but also bring real impacts to local and regional communities.

The IKN development project also spurs infrastructure development in the surrounding areas. The construction of new toll roads, railways, ports, and airports in the region will improve Kalimantan’s connectivity with other regions in Indonesia. This will not only facilitate the mobility of goods and services, but also open access for investors who want to contribute to local economic development.

Director of Government Administration and Building Permit Control of the IKN Authority, Kuswanto revealed that the central government is currently prioritizing the development of the IKN. He conveyed this in Sepaku, North Penajam Paser, on Wednesday, with a focus on the development of the city ecosystem in the core area of ​​the government center (KIPP).

“To realize a new modern economic city, the Indonesian capital city needs investment-based infrastructure,” said Kuswanto.

Several basic infrastructure and government buildings have been built at KIPP in the Indonesian capital, Kuswanto continued, which has also fulfilled the licensing aspects before operating.

“There are 32 non-business permits in the Indonesian capital that have met the requirements and will soon be operational,” he said.

Intensive investment and development of the construction sector contribute to creating new jobs, boosting related sectors, and increasing people’s purchasing power. In the third quarter of 2024, East Kalimantan recorded a Gross Regional Domestic Product (GRDP) based on current prices reaching IDR213.47 trillion. The economy grew by 5.52 percent compared to the same period in 2023.

This means that almost all business fields experienced positive growth. Among the sectors that contributed significantly to East Kalimantan’s GRDP during the period, namely the construction sector which grew by 13.98 percent and the government administration, defense, and mandatory social security sectors grew by 13.87 percent. This achievement indicates that the development of IKN infrastructure continues, both in terms of physical and non-physical aspects, such as increased investment.

Head of IKN Authority, Basuki Hadimuljono said, around Rp58 trillion has been available from private sector investment. KPBU has also been available from proposals that are being processed for roads, Multi Utility Tunnel (MUT) and housing, from Intiland and Nindya Karya.

“And from the APBN amounting to Rp68 trillion to date,” he said. He also emphasized that investment interest, both from within and outside the country, continues to increase to form three sources of financing that are the pillars of IKN development, namely the APBN, private sector investment, and Government and Business Entity Cooperation (KPBU).

The development of the IKN is not only about creating a new capital city, but also building a better future for Indonesia. The IKN is expected to be a model of a modern city that is environmentally friendly, inclusive, and globally competitive. With all its economic potential, the IKN can become a center of growth that will change the face of Kalimantan and provide broad benefits for all of Indonesia.

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