Interregional Structural Paths and Tertiarization in East Kalimantan Ahead of Indonesia’s New Capital, Nusantara

This article examines intraregional economic transactions in Indonesia following the relocation of the Nusantara capital to East Kalimantan. However, East Kalimantan currently relies on natural resources that differ from those prioritized in the Nusantara development goals. The central research question is as follows: which specific transaction pathways are critical to supporting the transition of East Kalimantan to a service-based economy? This paper contributes by (i) updating the SPA-based structural diagnosis of Indonesia using IRIO 2015, and (ii) identifying specific intra- and interregional paths that constrain or facilitate the tertiarization of East Kalimantan under the Nusantara shock. Results inform infrastructure and service-sector investment priorities, helping ensure that the relocation of Nusantara translates into long-term structural transformation in East Kalimantan.