Is Economic Development Experiencing a Shift? A Comparative Estimate on the New IKN

Abstract

The originality from this study lies in the topic raised about Ibu Kota Nusantara (IKN) by dissecting nine indicators in economic development. The urgency of this study is to see comparisons in the economic development landscape based on two different data: (1) before IKN in 2019–2021 and (2) since IKN in 2022–2024. The nine parameters of economic development analyzed are gini ratio (GR), income per capita (IpC), poverty (Pov), open unemployment (OU), labor force participation (LFP), economic growth (EG), human development (HD), inflation (Inf), and investment (Inv). The analysis scenario uses different tests (independent sample, one sample, and paired sample). The results of data processing implemented using independent sample test show that the two variables (GR and OU) are significantly related in an unpaired way. On the other hand, the one sample test predicts that eight variables (GR, IpC, Pov, OU, LFP, HD, Inf, and Inv) have a single significant effect. Then, through a paired sample test, it is reported that only OU has a significant influence in pairs. Overall, there are similar findings through these three tests, where OU is the only indicator of economic development that is consistently significantly affected over both different time periods. The implications of the current study are of concern to stakeholders with understanding and rethinking economic policies made towards sustainability in the new IKN.