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    Home/Indonesia/East Kalimantan/Penajam Paser Utara/Sepaku/Tengin Baru

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    Sepaku, Penajam Paser Utara, East Kalimantan

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    About Tengin Baru

    Tengin Baru – a settlement in northern Kalimantan Timur

    Tengin Baru is located in the Sepaku district of Penajam Paser Utara regency in Kalimantan Timur (East Kalimantan) province on the island of Borneo. The settlement is positioned in the northern part of the regency, in proximity to the Makassar Strait. The regency, situated in the eastern coastal region of Kalimantan Timur across territories on both sides of the Makassar Strait, contributes to Indonesia's geographic and economic structure. Administratively, Tengin Baru belongs to Sepaku kecamatan, which currently stands at the center of Indonesian political interest due to the designation of the planned Ibu Kota Nusantara (the country's new capital) location.

    General overview

    Tengin Baru is one of the smaller settlements in Penajam Paser Utara regency and is not internationally recognized as a notable tourist or economic destination. The regency had a total population of approximately 202,067 residents by the end of 2024, with a density of around 61 people per km², indicating sparse development. Detailed demographic, transportation, and infrastructure data for Tengin Baru at the settlement level are not available in publicly accessible sources, making more specific information about the locality best understood at the Sepaku kecamatan level. Sepaku kecamatan, however, has become strategically important over the past decade, as Indonesia's government selected this area as the location for Ibu Kota Nusantara (ICN), the country's new capital.

    The settlement belongs to Penajam Paser Utara regency, which lies south of Kutai Kartanegara regency and north of Paser regency. The regency became an independent administrative unit in 2002, when it was separated from the original Pasir (now known as Paser) regency. The area is well connected to the nearby city of Balikpapan, one of the most important economic and transportation hubs in Kalimantan Timur. This proximity makes the region's smaller settlements, including Tengin Baru, relatively accessible, positioning it as a transitional zone between rural and semi-urbanized communities.

    Real estate and investment

    Tengin Baru's real estate market forms part of the broader economic and development dynamics of Penajam Paser Utara regency. The regency has experienced gradual development over the past two decades, particularly following the announcement of the Ibu Kota Nusantara project and the designation of Sepaku kecamatan. Investment opportunities are heavily dependent on infrastructure developments connected to the country's new capital project. However, specific property prices, land values, or investment opportunities at the settlement level of Tengin Baru are not documented in public sources.

    Under Indonesia's general real estate regulations, foreign investors can purchase property in limited forms. Indonesian law permits foreign individuals and entities to lease land for long periods (up to 30 years, renewable thereafter) and to purchase property under specific conditions, though these transactions are subject to strict regulations. Tengin Baru and the broader Sepaku area fall within development zones associated with the Ibu Kota Nusantara project, which holds long-term growth potential; however, reliable settlement-level data on current real estate market dynamics are not available.

    The regency's economy has traditionally centered on mining, oil exploration, and agricultural and agroforestry sectors. This structure is gradually transforming due to infrastructure projects and new capital development. Sepaku kecamatan, home to Tengin Baru, is expected to attract further investment through infrastructure development; however, specific information on this at the settlement level is not currently available.

    Safety and security

    Specific safety data for Tengin Baru at the settlement level are not available in publicly published sources. The security situation for Penajam Paser Utara regency as a whole can be partially documented at the Kalimantan Timur province level. Generally, there are significant differences between Indonesian cities and rural regions in terms of traffic accidents, violent crime, and other security risks. In rural areas of Kalimantan, particularly in smaller settlements, transportation infrastructure is often underdeveloped, and environmental or traffic hazards may be elevated in certain zones.

    Government investments and gradual construction related to the Ibu Kota Nusantara project are expected to bring infrastructure improvements to Sepaku kecamatan, which may indirectly contribute to improved public order. Smaller settlements typically have lower crime rates than major cities, though limitations may exist in social services, medical care, and transportation safety. Visitors to the region are advised to follow recommendations from Indonesian local authorities and basic travel guidelines, and to consult local transportation and safety studies.

    Tourist attractions

    No named tourist attractions are listed for Tengin Baru at the settlement level in publicly available sources. By its nature, the settlement is a small rural village primarily serving local and regional administrative functions rather than tourism-oriented development. The settlement is, however, part of Sepaku kecamatan, which currently stands at the center of Indonesia's development focus due to the Ibu Kota Nusantara project.

    Within the broader region, at the Penajam Paser Utara regency level and in the vicinity of the nearby city of Balikpapan, natural and cultural attractions can be found. Balikpapan, located several to several dozen kilometers from Tengin Baru, has been the economic and tourism hub of Kalimantan Timur for several decades, featuring maritime port infrastructure and multiple hotels. The coastal areas along the Makassar Strait represent fishing and moderately tourism-oriented zones; however, no specifically named tourist attractions are documented within Tengin Baru settlement itself.

    Borneo island in general is characterized by natural diversity and rainforest ecosystems; however, specific local tourist developments in the Tengin Baru area are not known. The long-term realization of the Ibu Kota Nusantara project is expected to indirectly contribute to tourism infrastructure development in the region; however, prior to this, the settlement retains its character as a local, rural locality.

    Summary

    Tengin Baru is a small rural settlement in Sepaku district of Penajam Paser Utara regency in Kalimantan Timur province. The settlement is under the indirect influence of the broader region's infrastructure and political development due to increased investment resulting from the Ibu Kota Nusantara project. Settlement-level data regarding real estate, security, or tourism are limited; however, development trends at the regency and kecamatan levels in recent years and the long-term prospects of the new capital project suggest future opportunities for the area.


    More about Sepaku

    Sepaku – Where Indonesia's New National Capital Is Being Built Sepaku is arguably the most strategically significant district in all of Indonesia at this particular moment in…

    Sepaku – Where Indonesia's New National Capital Is Being Built

    Sepaku is arguably the most strategically significant district in all of Indonesia at this particular moment in history – it is where Nusantara, Indonesia's new national capital, is being built. The decision announced by President Joko Widodo in 2019, confirmed by the Indonesian parliament in 2022 through the IKN Law, and now in active construction, represents the largest and most consequential development project in Indonesian history: the relocation of the national capital from Jakarta, which has served as the capital since independence, to an entirely new planned city in the forests of East Kalimantan. The Nusantara city masterplan covers approximately 56,180 hectares of Sepaku's territory, designed to house the government offices, presidential palace, parliament, supreme court and the entire administrative apparatus of the Indonesian state, along with eventually a million or more permanent residents. The construction of the Government Core Area (Kawasan Inti Pusat Pemerintahan) is visibly advanced as of 2024, with the Presidential Palace, ministerial offices and supporting infrastructure taking physical form in what was forest and palm oil plantation just five years ago.

    Tourism & Attractions

    IKN Nusantara itself has become a tourism destination – Indonesians from across the archipelago travel to Sepaku to witness the once-in-a-generation spectacle of a national capital being built from scratch. The IKN Authority has established a visitor centre and viewing areas where authorised visitors can observe the construction progress. The iconic designs of the new capital's landmark buildings – the Istana Negara (State Palace) with its Garuda wing design, the ministerial headquarters, the parks and ceremonial spaces – are visible in various stages of completion. The surrounding forest of Sepaku, which is outside the construction zone, retains the Bornean lowland forest ecology that made this part of Kalimantan ecologically significant. Mangrove forests along the coastal section provide birdwatching in the transitional zone between the new capital's development and the natural coastal environment.

    Real Estate Market

    The Sepaku property market is the most watched real estate market in Indonesia. Land within or adjacent to the IKN boundaries has been subject to a government land acquisition process, with compensation paid to existing landowners. Land outside the IKN boundary but within the IKN metropolitan area has experienced extraordinary price appreciation – some parcels have appreciated by 500–1000% or more from pre-announcement levels as investors, developers and speculators have competed for positions in what they believe will become the commercial and residential hinterland of Indonesia's new capital. The IKN master plan includes designated commercial and residential zones outside the government core, and these areas represent the primary investment opportunities for private sector development. Due diligence on the specific land status, zoning and acquisition history of any parcel in Sepaku is absolutely essential.

    Rental & Investment Outlook

    The IKN construction phase (ongoing until approximately 2030 for the initial government core) generates massive demand for contractor accommodation, logistics facilities, equipment storage, construction worker housing and support services. These near-term cash flow opportunities are available to investors who can move quickly and manage the operational complexity of a major construction zone. Longer-term, as the government core is completed and populated by the government workforce and their families, the demand for residential, commercial, educational and healthcare real estate in the designated development zones will be sustained over decades. The investment thesis is compelling but requires patience: IKN will be a decades-long development, and near-term returns will be construction-phase oriented while long-term returns depend on the capital's successful development as a functioning city.

    Practical Tips

    Access to IKN Nusantara construction areas requires official authorisation through the OIKN (IKN Authority) – do not attempt to enter restricted areas without this. The IKN Visitor Centre provides a legitimate and informative way to observe the development. For property investment in Sepaku, engage a qualified Indonesian property lawyer and land consultant with specific IKN expertise – the land law situation is highly complex, with government acquisition processes, zoning designations, and IKN-specific regulations that differ significantly from standard Indonesian property law. Prices for land outside the IKN boundary but marketed as "IKN adjacent" vary enormously and should be independently verified. Visit the OIKN website and the IKN law and regulations for the current official framework before committing to any investment decision.

    More about Penajam Paser Utara

    Penajam Paser Utara – Nusantara, Indonesia’s New CapitalPenajam Paser Utara (PPU) Regency lies in the southern part of East Kalimantan province, on the southern shore of Balikpapan…

    Penajam Paser Utara – Nusantara, Indonesia’s New Capital

    Penajam Paser Utara (PPU) Regency lies in the southern part of East Kalimantan province, on the southern shore of Balikpapan Bay. Its capital is Penajam. The region is the site of Indonesia’s new capital, Nusantara (IKN) – the country’s largest infrastructure project.

    Attractions and Activities

    Nusantara (IKN) construction site can be visited. Remaining Borneo rainforest with orangutans. Balikpapan Bay coastline. Nipah-Nipah mangrove forest and beach.

    Culture and Cuisine

    Paser Dayak and immigrant cultures blend. Cuisine is Borneo: ikan bakar, soto banjar, nasi kuning.

    Public Safety

    PPU is a safe region, but construction areas are restricted. Medical care: hospital in Penajam; Balikpapan (approx. 30 minutes by ferry) has advanced facilities.

    Practical Information

    From Balikpapan, approximately 30 minutes by ferry or via Balikpapan Bay bridge. The best time to visit is March to October. Accommodation: simple hotels.

    More about East Kalimantan

    East Kalimantan is Borneo's largest province, where the Derawan Islands' marine paradise, the Mahakam River's culture, and the new capital Nusantara converge. The region is…

    East Kalimantan is Borneo's largest province, where the Derawan Islands' marine paradise, the Mahakam River's culture, and the new capital Nusantara converge. The region is world-famous for diving, sea turtles, and the stingless jellyfish lake.

    Where is East Kalimantan?

    The province is located on Borneo's eastern coast, along the Celebes Sea. Balikpapan and Samarinda are the main cities, both with international airports. Indonesia's planned new capital, Nusantara, is currently under construction in the province's northern part.

    What to See?

    1. Derawan Islands – Marine Paradise

    The Derawan Islands are an archipelago with crystal-clear waters where sea turtles, manta rays, and sponges await. Kakaban Island's stingless jellyfish lake is unique: the jellyfish don't sting, and you can swim among them. Sangalaki Island is a nesting site for manta rays and sea turtles.

    2. Kutai National Park

    Kutai National Park is one of Borneo's oldest protected areas. Orangutans, Bornean elephants, and rare bird species live here. The park spans rainforests around Sangatta.

    3. Mahakam River

    Indonesia's third-longest river is the stage for Dayak and Banjar culture. River cruises offer sightings of dolphins, traditional villages, and floating markets. Tenggarong and Kutai Kartanegara are historically significant towns along the river.

    4. Nusantara – The New Capital

    Nusantara, Indonesia's planned new capital, is currently under construction in northern East Kalimantan. The implementation is in progress, and the region is becoming an increasingly important tourism and economic hub.

    5. Balikpapan and Samarinda

    Balikpapan is the oil industry center, but Kumala Beach and local gastronomy are also attractive. Samarinda is the gateway to the Mahakam River, from where river excursions depart.

    When to Visit?

    March–October is the dry season, ideal for diving at the Derawan Islands and river tours. The jellyfish lake is visitable year-round.

    How Long to Stay?

    5–7 days recommended:

    • 2–3 days: Derawan Islands, diving, jellyfish lake
    • 1–2 days: Mahakam River cruise
    • 1 day: Kutai National Park
    • 1 day: Balikpapan or Samarinda

    Renting or Investing in East Kalimantan?

    If you're considering renting or investing in property in East Kalimantan, these resources on our site can help you make informed decisions:

    • Indonesian Property FAQ – answers to the most common questions about renting and buying
    • Land Zoning Guide – understanding Indonesian land use regulations
    • Indonesian Real Estate Terminology – key terms explained
    • Property Guide – comprehensive guide to Indonesian real estate
    • Living in Indonesia – essential guide for expats
    • Balikpapan Guide – local insights and practical tips

    Official Resources

    For further information about East Kalimantan, these official sources may be helpful:

    • Indonesia Travel – official tourism portal
    • East Kalimantan Provincial Government – regional government information
    • Bank Indonesia – currency and exchange rate data
    • BMKG – weather and climate information
    • Directorate General of Immigration – visa regulations for foreign visitors

    Summary

    East Kalimantan is where marine experiences meet river culture. The Derawan Islands offer world-class diving, while the Mahakam River provides an authentic Borneo experience.

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