Balikpapan, 16 December 2024: ERIA successfully conducted a workshop on ‘Developing a Sustainable and Inclusive Economic Ecosystem in Nusantara Capital City (IKN),’ at Gran Senyiur Hotel, Balikpapan, on 16 December 2024. Co-organised with the Nusantara Capital Authority (OIKN), the event gathered academics as well as representatives from ministries, local governments, and other institutions to discuss ongoing studies related to Nusantara's development. Discussions focused on the macroeconomic framework for economic transformation, regional connectivity, and human capital development.

Nusantara is envisioned as a driving force for Indonesia’s future economic growth. Central to this ambition is the development of an economic superhub, which will consist of six priority industrial clusters and is designed to position Nusantara as a new centre of growth. The studies presented at the workshop seek to develop a more detailed implementation framework for Nusantara’s development, providing input for the city’s economic transformation roadmap and laying the groundwork for sustainable and inclusive development.

Dr Fauziah Zen, Senior Economist at ERIA, delivered the opening remarks, highlighting the significance of these studies in supporting the development of Nusantara. This sentiment was echoed by Dr Mia Amalia, Deputy of Planning and Land Affairs at OIKN, who emphasised the importance of connectivity and regional collaboration. ‘Nusantara cannot grow on its own and will rely on surrounding areas to achieve its goals,’ she said.

This workshop facilitated productive discussions, yielding valuable insights from OIKN; Regional Development Agency (Bappeda) of Balikpapan, Samarinda, and East Kalimantan; Ministry of National Development Planning (Bappenas); and Statistics Indonesia - East Kalimantan Province (BPS Kalimantan Timur).

Representatives PT Daya Makara UI also presented their findings on the macroeconomic framework for Nusantara’s economic transformation roadmap. Commissioned by OIKN, this study assessed existing economic potential and geographic conditions of Nusantara, and outlined the stages of industrial development essential for transitioning Nusantara from extractive industries to advanced industrial clusters. The study highlighted the importance of connectivity infrastructure and workforce preparation as cornerstones of the economic transformation roadmap.

ERIA’s study on regional connectivity, supported by the University of Indonesia’s Institute of Economic and Social Research (LPEM FEB UI), examined critical connectivity models and infrastructure requirements to support the Nusantara Superhub. Denisa Athallia and Nadira Melia, Research Associates at ERIA, are part of ERIA’s team in this study. Dr Rafiq Idris of Universiti Malaysia Sabah added valuable perspectives by analysing Nusantara’s links with East Malaysia and BIMP-EAGA, identifying both challenges and opportunities for enhancing regional connectivity. Furthermore, a study supported by the Demographic Institute (LD) FEB UI focused on labour migration in Kalimantan by identifying push and pull factors, policy interventions, and labour skills needed to support Nusantara’s development.

This workshop served as a platform for exchanging perspectives and research findings, enabling the refinement and alignment of economic studies on Nusantara. Such harmonisation is crucial not only for enriching each study but also for ensuring that the resulting policy recommendations are cohesive, actionable, and capable of effectively driving Nusantara's economic transformation. The event concluded with a visit to Nusantara on 17 December 2024, where participants observed the development process and held discussions with local stakeholders, including construction workers, farmers, and SME actors.