Understanding the Economy

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Kalimantan's Current Economic Situation

The development of the National Capital City (IKN) in East Kalimantan is viewed as a strategy to promote economic development outside of Java Island. From an economic perspective, the relocation of the capital is expected to create new job opportunities, stimulate certain sectors, and attract investments, ultimately increasing both regional and national economic growth. However, this project faces significant challenges in terms of financing and the effective distribution of the budget. There are also concerns about the very high construction costs and potential uncertainties in budget management, which could affect long-term economic stability.