Identification of Potential Plantation Subsectors to Support the Development of the New Capital City in Kutai Kartanegara Regency

Abstract

Indonesia is a country that is endowed with a wealth of natural resources, which play an instrumental role in the country’s economic and social advancement. The utilisation of existing natural resources can facilitate the enhancement of community welfare and the strengthening of the Indonesian state’s defences. This may be achieved, for instance, through the exploitation of natural resources derived from plantations. In light of the aforementioned, it is imperative to conduct research on the potential of the plantation subsector to facilitate the seamless development of the new national capital city in Kutai Kartanegara Regency. The objective of this research is to ascertain the potential of the plantation subsector to facilitate the seamless development of the new national capital (IKN) in Kutai Kartanegara Regency from 2015 to 2022, with a focus on each subsector. Plantation data in Kutai Kartanegara Regency between 2015 and 2022 is used to analyse plantation conditions with Location Quotients (LQ) method to ascertain statistical and spatial element to this study. The findings of the research indicate that palm oil, coconut and coffee commodities were present in all sub-districts of Kutai Kartanegara Regency throughout the period from 2015 to 2022. Consequently, these commodities have the potential for further development. The commodities that form the basis of Kutai Kartanegara Regency, East Kalimantan Province, and are most commonly found in each subdistrict are palm oil and rubber. In contrast, coconut, coffee, cocoa, and pepper are less abundant. The ongoing development of existing superior/base commodities is intended to enhance the welfare of the population and to strengthen the national security.