Indonesia’s new capital city to contribute little to national economy
Indonesia’s new capital city to contribute little to national economic growth
Indonesia’s new capital city will contribute only an additional 0.02 percentage point to the country’s economic growth, and the impact will also be short lived, according to Institute for Development of Economics and Finance (Indef) research.
Small settlements dot Penajam District, North Penajam Paser, East Kalimantan, where the new capital will be constructed. (Photo: )
Jakarta (VNA) - Indonesia’s new capital city will contribute only anadditional 0.02 percentage point to the country’s economic growth, and theimpact will also be short lived, according to Institute for Development ofEconomics and Finance (Indef) research.
The researchestimates that in the short run, the new capital city will contribute 0.17percentage point to the total investment, 0.02 percentage point to the totalexports and imports and 0.05 percentage points to the total employment rates.
This isbecause the new capital city is about housing the government and notbusinesses, said Indef economist Rizal Taufikurahman at law firm Dentons HPRP'sdiscussion forum on the future of doing business in Indonesia on January 22.
Moreover, thenew capital city was estimated to increase the total short-term output growthof the construction industry by 0.15 percentage point, mineral and steelindustries growth by 0.1 percentage point and leather and sea transportationindustries by about 0.07 percentage point, among other things.
The newcapital city, to be developed in a 256,000-hectare area in the North PenajamPaser and Kutai Kartanegara regencies in East Kalimantan, will therefore bringabout little economic impact, Rizal reiterated.
The capitalwould likely cause East Kalimantan's inflation rate to increase slightly bynearly 0.1 percentage point in the short term and 0.04 percentage point in thelong term.
The Indonesiangovernment estimated that the development of the new capital city would cost466 trillion Rp (34 billion USD), of which 54.4 percent would come frompublic-private partnership schemes, 26.4 percent from the private sector and19.2 percent from the state budget./.
The Indonesian government has employed US consultants McKinsey & Company to help evaluate its plan to build a new capital city in East Kalimantan, a high-ranking official stated on October 21.
Indonesian President Joko Widodo said on December 18 that he had ordered his Cabinet to speed up a 32.79 billion USD project to move the capital city from Jakarta to Borneo island so that the new "Silicon Valley"-like city could be ready by 2023, a year earlier than the government's original estimate.
Indonesian Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan has called on Singaporean investors to invest in a number of sectors in the country's new capital city in East Kalimantan Province.
Indonesian President Joko Widodo on January 13 invited nations and businesses around the world to invest in the country’s soon-to-be-built administrative hub.
Indonesian President Joko Widodo has said he wants public and private transportation in the new capital city to be the first in the world that uses only autonomous and electric vehicles.
Coordinating Minister for Economic Affairs Airlangga Hartarto and EAEU Trade Minister Andrey Slepnev jointly declared the conclusion of FTA talks on the sidelines of the 28th St. Petersburg International Economic Forum (SPIEF 2025), according to the statement.
The article stressed that throughout his revolutionary career, the founder of modern Vietnam consistently regarded the revolutionary press as a vital part of the Vietnamese Party’s and nation’s revolutionary struggle.
Pichai said the trade talks with the US are important and need to move forward professionally, without regard for any political changes in Thailand, believing that Thailand has clear principles, guidelines and procedures in place.
The tax adjustment supports the Malaysian Government’s strategy to reduce reliance on foreign food supply chains and to assist domestic farmers, a finance official has said.
The proposed venue is located in the Chatuchak area of Bangkok, featuring eight public sites, including Krungthep Aphiwat Central Terminal and several nearby parks.
Connectivity is expected to improve further with the completion of the fifth Laos–Thailand Friendship Bridge by the end of 2025, facilitating logistics and agricultural exports to Vietnam, Thailand, and China.
Two naval gunboats intercepted a fishing vessel carrying 1.5 tonnes of methamphetamine hydrochloride off the coast of the main island of Luzon just before dawn, in a joint operation with the Philippine Drug Enforcement Agency.
In the today context of socio-economic development and growth, the professionalism of Vietnam’s revolutionary journalists continues to rise, guided by exemplary mastery of new information technologies and the modernisation of their founding principles to preserve the enduring values of revolutionary journalism.
Thai Permanent Secretary of the Ministry of Commerce Vuttikrai Leewiraphan Thailand's formal proposal will be substantial enough for the US to consider further detailed negotiations. He hoped for a tariff rate not exceeding 10% and suggested that the US might extend the negotiation period if an agreement is not reached by the July 8 deadline.
Organised by the Ministry of Culture and the Association of Thai Silk & Culture Promotions, the event honors Her Majesty the Queen on her 47th birthday anniversary and promotes Thai craftsmanship on an international stage.
Prensa Latina's recent article on Vietnam’s assurance of smooth and effective transition to a leaner structure highlighted Prime Minister Pham Minh Chinh’s latest directions on implementing 28 resolutions regarding the decentralisation and delegation of authority.
The lab focuses on four key thematic areas: energy transition and green innovation, sustainable agriculture, circular economy and sustainable cities, and nature-based solutions and biodiversity.
The key content of the document titled "Accelerating Innovative Strategies: Addressing the OOSCY Challenges" will be refined further in a seminar preceding the 47th ASEAN Summit in Kuala Lumpur this October.
This follows Telegram’s serious failure to address the content that has been repeatedly reported to them, despite various efforts of negotiation and cooperation made by MCMC, it said.
Efforts to empower women must transcend dialogue and translate into concrete commitments, including corporate pledges and government partnerships, according to the spouse of Malaysian Prime Minister Anwar Ibrahim.
The forum featured two in-depth discussion sessions, engaging representatives from governments, think tanks, and businesses from both ASEAN and China, on how to forge closer ties for a common future.
The new FIFA Hub in Jakarta will not only support football development in Indonesia but also serve as a coordination centre for 21 football associations across Southeast and East Asia.
Minister Counselor Nguyen Hoang Nguyen reaffirmed Vietnam’s principled and consistent stance on the Palestine issue, calling for an immediate and lasting ceasefire across the entire Gaza Strip.
PM Anwar Ibrahim affirmed the determination of Malaysia, as ASEAN Chair for 2025, to utilise all viable regional mechanisms of the bloc and work with partners to de-escalate violence and restore a peace process led by Myanmar.
Small settlements dot Penajam District, North Penajam Paser, East Kalimantan, where the new capital will be constructed. (Photo: ) 
