DEVELOPMENT OF ECONOMIC SUPPORTING INFRASTRUCTURE IN THE NATION'S CAPITAL: A PROPOSAL USING A CROWDFUNDING SCHEME

Abstract

Objective: This research aims to provide proposals for a comprehensive policy framework and strategic plan to advance economic prosperity through infrastructure development in the New Capital Region of East Kalimantan, Indonesia. Theoretical Framework: The theory used is crowdfunding from Kirby & Worner (2014). The crowdfunding model includes social crowdfunding communities, loans/donations, and reward crowdfunding. The financial benefits of crowdfunding encompass peer-to-peer (P2P) loans and equity crowdfunding. Method: The method employed is a qualitative approach using interview discussions supported by participant observation. Twenty-two stakeholders, including policymakers and community members, participated in the study, providing diverse perspectives. The research takes place from September 16 to November 19, 2023, with the research locus in the city of IKN Nusantara. Results and Conclusions: To comprehend the short-medium-and long-term perspectives, these plans require innovative financing methodologies, such as crowdfunding, which is considered an essential element. In the short term, community involvement is targeted through SBSN, facilitating direct community participation in infrastructure funding. This medium-term strategy integrates digital platforms and blockchain technology, increasing transparency and strengthening public trust. A mixed creative financing model is recommended for public transport, aligning crowdfunding with Public-Private Partnerships. In the long term, this study highlights the growing maturity of crowdfunding and its potential positive influence on the infrastructure supporting the economy, setting a precedent that can be imitated in other regions in Indonesia. Research Implications: In line with national aspirations to achieve advanced status by 2045, this proposal supports inclusive economic growth inspired by China's expertise in optimizing domestic resources. The importance of the Open Government concept was underlined, emphasizing community involvement to reduce foreign dependence and encourage sustainable economic growth. Originality/Value: This research includes concrete actions, such as implementing Government Sharia Securities, blockchain integration, and targeted financial education campaigns, all aimed at ensuring the effectiveness and long-term success of infrastructure development in the Capital Region.