Vol.1 Community Voices in the Shadow of Indonesia’s New Capital City

A series of thoughts on the development of Ibu Kota Nusantara (IKN).

Aaliyah Shafira
Global Future Insight
6 min readSep 27, 2024

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Indonesia Independence Day ceremony at IKN (Photo by Tempo.co)

The construction of Indonesia’s new capital city (IKN) has sparked diverse reactions, ranging from enthusiastic supporters to outspoken opponents. IKN (Ibu Kota Nusantara) is considered the country’s largest project, with the potential to drastically alter Indonesia’s political and economic landscape.

Having grown up in Jakarta, I sometimes wonder if it’s even possible to transfer all the social and political burdens of my hometown to another city. While Jakarta’s identity is shaped by its pollution and crowds, will this new city become the identity of Indonesia?

However, this is not my only concern. The socioeconomic and environmental impacts on surrounding communities must be considered within the broader context of IKN’s development. It is crucial to ask whether local communities are welcoming the arrival of large investors with open arms, or if they are being “forced out” to make way for these massive projects.

Economic Revival and the New Hope for Others

Local communities with substantial land holdings, investors, and political elites are the ones we can see benefited the most from this project. For landowners, the economic benefits of land appreciation offer substantial incentives. Some political elites also see the IKN as an opportunity for financial gain, fueling concerns about oligarchic influence in the project.

The construction and infrastructure development sectors are expected to provide employment opportunities, creating a new “economic magnet” for the region according to NOW! Jakarta news. The increase in IKN construction will solve the current local unemployment issues by generating thousands of temporary jobs in various sectors, such as engineering, construction, and logistics. Furthermore, these new initiatives and ongoing operating and maintenance requirements will support more job openings and promote a diverse labor market.

As IKN develops, the expanded infrastructure will likely attract new investments and enterprises, ultimately stimulating adjacent sectors and producing a multiplier impact on the local economy. This transformation would not only improve the livelihoods of locals but also position IKN as a competitive hub for innovation and growth, which would help increase the quality of life for the locals.

According to Antara News, there has been an increase of 9,976 workers as of mid-2023, with 2,000 workers coming from that area. Dahlia Yati, a local cultural activist of the Balik tribe in the IKN area, has seen a tremendous growth of new entrepreneurs under the category of trading and hospitality.

Here, we can see that the majority of the support for the IKN project comes from groups that stand to benefit from the megaproject. But does the other local community also feel included?

Realities of Local Communities

The rising discontent from local communities regarding the IKN development stems from the lack of engagement and protection of their rights. The rules that protect communities and natural resources make up the legal framework underlying IKN development. These laws, according to the Journal titled “Law-Making as a Strategy for Change: Indonesia’s New Village” by Jacqueline Vel, consist of the Forestry Law, the Law on Special and Special Autonomy, the Law on Local Government, and the Law on Natural Resources. However, questions have been raised about whether these laws, particularly in the context of forced relocations and land disputes, are enough to protect the rights of local people or are even being implemented.

Despite the claim by the public relations authority of IKN regarding community participation during the IKN development concerning local cultural engagement and community empowerment, exclusion still exists.

According to Suci Rahmatika and Fifiana Wisnaeni in their journal article titled “The 2022 Year Law Enforcement Policewoman (The IKN Law) on the Constitutional Rights of Citizens”, many local communities expressed concerns that the people of East Kalimantan were not sufficiently involved in the drafting process of Law No 3 of 2022, which forms the legal foundation for the development of the new capital city (IKN) in East Kalimantan.

This lack of involvement has drawn significant criticism, especially considering that more than 20,000 people in East Kalimantan have been relocated from their homes due to the development.

Photograph of Sernai at her Home [Washington, March 2023].

Indigenous voices, such as those of the Balik tribe, have expressed discontent, claiming that there has been insufficient representation in the decision-making process. While their concerns were ignored, a wooden home that once belonged to a 68-year-old woman of the Balik tribe, Sernai, was demolished to make way for the development of the new city.

This simple house, which had sheltered four generations before Sernai, now has to be abandoned by the fifth generation. In addition to that, Sernai mentioned that her land has given them not only a place to sleep but also to survive economically. Before the development started, in an interview with AlJazeera, she mentioned,

“We never had to buy things like water or vegetables before, but now we live a miserable life”.

To compensate for her now “miserable life”, the government has only given her $3,000 to support her family which includes 17 grandchildren.

While her situation is not fair, many locals’ fate is worse. Many people in east Kalimantan do not have certificates for the land they own as these houses were left to them by their ancestors. This makes it hard to process the legalization for compensation, leaving them only a small amount of money to nothing for the land that has been their family life support for the past generations. Moreover, this has also troubled their process to fight for their rights to stay in their own home.

Balancing Green Development and Social Equity: The Path Forward for IKN Nusantara

The question of whether the development of IKN Nusantara has helped or burdened the local community must be addressed. While some communities feel that the local programs have benefited their businesses, attention must now be directed to smaller local communities that have been largely disadvantaged.

The vision of a green city must also include sustainable development that minimizes the social impact on local communities in East Kalimantan. Authorities must create a new economic model for this city that not only addresses environmental concerns but also considers the social needs of local communities, particularly those who depend on the forest for their livelihoods. Therefore, an increase in the agroforestry sector should be considered to go hand-in-hand with the city’s development — providing equal socio-economic benefits for local communities.

Writers Profile

Aaliyah Shafira is a second-year bachelor’s student at the University of Amsterdam, Netherlands, specializing in Human Geography and Planning, with a focus on urban planning. Her academic journey has been driven by a deep passion for understanding the development and transformation of cities. She is particularly interested in how urban spaces can be designed to meet the needs of both people and the environment, especially in relation to the growing concept of sustainable cities.

References

Hasibuan, J. W. (2023, March 15). ‘Like we don’t exist’: Indigenous fear Indonesia new capital plan. https://www.aljazeera.com/news/2023/3/15/like-we-dont-exist-indigenous-fear-indonesia-new-capital-plan

Humas Otorita Ibu Kota Nusantara. (2023, December 18). Otorita IKN Terus Tingkatkan Keterlibatan Budaya Lokal dan Pemberdayaan Masyarakat. https://www.ikn.go.id/otorita-ikn-terus-tingkatkan-keterlibatan-budaya-lokal-dan-pemberdayaan-masyarakat

Nasution, R. (2023, February 22). Boosting construction workers’ competency through IKN project. Antara News. https://en.antaranews.com/news/273567/boosting-construction-workers-competency-through-ikn-project

NOW Jakarta. (2024, February 4). Cache://www.nowjakarta.co.id/from-fantasy-to-fact-the-making-of-the-new-capital-ikn/ — Google search. https://www.nowjakarta.co.id/from-fantasy-to-fact-the-making-of-the-new-capital-ikn/

Rahmatika, S., & Wisnaeni, F. (2023). The 2022 Year Law Enforcement Policewoman (The IKN Law) on the Constitutional Rights of Citizens. International Journal of Social Science Research and Review, 6, 411–420. https://doi.org/10.47814/ijssrr.v6i1.942

Sinaga, Y. (2023, September 28). Nusantara development project drawing more workers: OIKN. Antara News. https://en.antaranews.com/news/294777/nusantara-development-project-drawing-more-workers-oikn

VEL, J., ZAKARIA, Y., & BEDNER, A. (2017). Law-making as a strategy for change: Indonesia’s new village law. Asian Journal of Law and Society, 4(2), 447–471. https://doi.org/10.1017/als.2017.21

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