Displaced by progress: The new capital development and the powers of exclusion in Balikpapan Bay, Indonesia

Relocation of capital cities often promises modernization and economic growth but raises significant socio-ecological concerns. Indonesia's decision to move its capital from Jakarta to ‘Nusantara’ (IKN) in East Kalimantan exemplifies these challenges, particularly for local communities. This study examines the socio-ecological impacts of this development on coastal communities in Balikpapan Bay, a critical yet underexplored context in Indonesia's new capital project. Drawing on ‘powers of exclusion’ and ocean-grabbing theories, it investigates how government regulations, legitimation, market dynamics, and force intensify the exclusion of coastal communities in Balikpapan Bay, and how IKN's development reshapes access and fishers' relations to coastal resources. Employing qualitative methods, it draws on from field research in several villages around Balikpapan Bay. Findings reveal that the new capital development exacerbates long-standing exclusion of coastal communities, particularly for fishing groups. Pressures from the logging, mining, and plantations had already limited fishermen's access and IKN development deepens this exclusion, disrupting fishers' livelihoods, and sparkling social conflicts over shrinking resources. The study highlights the state's role in legitimizing exclusions under development narratives, prioritizing state and corporate interests over local communities. This research contributes to a deeper understanding of the socio-environmental ramifications and trade-offs inherent in large-scale infrastructure projects like capital relocation. This research underscores the urgent need for inclusive approaches in coastal governance to reconcile large-scale development with socio-ecological justice, offering critical insights for policymakers and development practitioners worldwide.