<![CDATA[The Nusantara Capital City (IKN) in East Kalimantan is a national strategic project expected to drive economic growth. This study analyzes the impact of the initial investment in the IKN’s development on the economy of East Kalimantan using Input–Output (I–O) analysis. The 2024 I–O table was updated using the RAS method and used to simulate an investment of Rp56.2 trillion under two scenarios. The results show that construction and manufacturing are key sectors, while mining and quarrying which contribute 39.26% to the regional gross domestic product (GRDP) are not considered key sectors. IKN investment has a positive impact on output, net domestic product (NDP), household income, and employment. Simulation 1 yields higher output and employment. Simulation 2 yields higher household income with relatively similar NTB and more widespread benefits. These findings highlight the importance of investment allocation and strengthening broadly interconnected sectors to support East Kalimantan’s economic diversification.]]>
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