In the development of the Nusantara Capital City (IKN) infrastructure from 2023 to 2024, the Ministry of Public Works and Housing (PUPR) estimates a requirement of 331 thousand tons of construction steel. This figure underscores the significant demand for construction materials in the project, including 1.9 million tons of cement, 325,223 tons of asphalt, 450,579 tons of precast concrete, and 2,194 units of equipment. The relocation of IKN to Kalimantan was based on several strategic advantages. Firstly, its central location within Indonesia, intersecting the Indonesian Archipelago Shipping Lane II (ALKI II) in the Makassar Strait, serves as a major national and regional maritime route. Secondly, the area boasts comprehensive infrastructure, including airports, ports, well-maintained highways, and adequate energy and water supply networks. Thirdly, its proximity to developed cities like Balikpapan and Samarinda further enhances its appeal.
Fourthly, ample government-controlled land ensures sufficient space for IKN's development, with minimal risk of natural disasters. This relocation aligns with the vision of establishing a new economic 'center of gravity' in the heart of the Indonesian archipelago. Furthermore, the planning process for IKN incorporates environmental assessments, such as the Strategic Environmental Impact Assessment (KLHS) conducted by the Ministry of Environment and Forestry in 2019, and further detailed in the Masterplan KLHS for IKN developed by the Ministry of National Development Planning/National Development Planning Agency in 2020. This deliberate approach aims to provide extensive opportunities for regional development outside of Java, thereby promoting more balanced national development.
