Positive Economic Impacts Emerge for Coastal Residents Amidst Nusantara City Development

Nusantara development

Jakarta, The Gulf Observer: The ongoing development of the new capital city of Nusantara (IKN) in East Kalimantan has yielded positive economic impacts on the residents of coastal areas in Penajam Sub-district, according to statements from Setta, a local community figure.

Setta highlighted the positive effects of Nusantara City’s development on buffer zones in various villages within Penajam Sub-district. The government is actively engaged in supporting facilities and infrastructure projects, including the construction of a VVIP airport and toll roads connecting Nusantara to Balikpapan and Samarinda.

The economic benefits extend to residents in villages such as Maridan, Gersik, and Pantai Lango. Setta emphasized that the construction works for Indonesia’s future seat of government have provided a source of income for locals, particularly those catering to the essential needs of IKN construction workers.

In Pantai Lango Village, for example, local residents are renting out 15-20 barrack-styled houses to construction workers, generating substantial income, with rates reaching up to Rp15 million (approximately US$961) per year.

Setta also highlighted the entrepreneurial efforts of three families in Pantai Lango, who provide daily packages of breakfast, lunch, and dinner to approximately 250 construction workers. These food packages are offered at affordable prices, ranging from Rp20,000 to Rp25,000 (around US$1.60) per package.

With many residents in the village primarily engaged in fishing, Setta noted a surge in the demand for fish due to the development of Nusantara. Additionally, the government is hiring local fishermen as additional laborers for various projects, especially during adverse weather conditions when fishing is challenging.

Appreciating the positive impact of IKN development, Setta acknowledged that the residents of Pantai Lango Village are experiencing additional income opportunities, showcasing the broader economic benefits for coastal communities as the Nusantara City project progresses.