Analysis of rice supply in the Nusantara Capital City

Abstract

Located in East Kalimantan Province, Nusantara Capital City (IKN) will be the new capital city of Indonesia. This plan will increase the population due to migration and economic growth in IKN. It will directly impact the increasing demand for food, especially rice. This study aims to analyse the sources of rice supply in IKN. Primary and secondary data collected in March - July 2023 from key informants in East Kalimantan, Jakarta, and South Sulawesi Province were analysed descriptively and quantitatively. IKN rice demand has been estimated to increase to 37.5 metric tons by 2024, along with an increase in population. The rice supply in East Kalimantan, derived from local production, fulfils only 49% of the total demand, whereas in IKN, it fulfils only 5%. In 2024, the total regional government rice reserve in regencies and cities near IKN was only 1.02% of the IKN rice demand. Most alternative rice supplies come from East Java and South Sulawesi Provinces. The policy implications are as follows: (1) increasing rice production by intensifying and extensifying farming; (2) expanding food reserves by increasing volume and building infrastructure; and (3) developing Regional Food Enterprises (BUMD) for rice supply chain efficiency.