The relocation of Indonesia’s capital to the IKN (Ibu Kota Negara) Nusantara in East Kalimantan is leading to significant changes in land use, shifting from natural vegetation and agriculture to urban infrastructure. This transition brings about economic diversification and urban expansion, but it also raises concerns about its impact on society, the economy, and the environment. The rapid development affects biodiversity conservation, food security, and the livelihoods of rural and Indigenous communities, leading to conflicts across social and economic dimensions. This research uses qualitative and quantitative data to examine the socio-economic and environmental changes in the IKN Nusantara area from 2003 to 2023. The findings show a notable increase in built-up areas, indicating urbanization and a decrease in agricultural land. The study discusses the implications for local populations and ecosystems, emphasizing the need for inclusive governance, community participation, and conflict resolution. It also proposes a comprehensive policy framework that promotes sustainable land management, recognizes Indigenous and local rights, and fosters inclusive economic growth to respect Indonesia’s rich environmental and cultural heritage.