Indonesia’s new capital city will only contribute an additional 0.02 of a 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.

The research estimates that in the short run, the new capital city will contribute 0.17 of a percentage point to total investment, 0.02 of a percentage point to total exports and imports and 0.05 of a percentage point to total employment rates.

“This is because the new capital city is about moving the government and not businesses,” said Indef economist Rizal Taufikurahman at law firm Dentons HPRP’s discussion forum on the future of doing business in Indonesia on Wednesday.

Read more at https://www.thejakartapost.com/news/2020/01/22/new-capital-city-to-contribute-little-to-indonesias-economic-growth-indef.html

Credits: The Jakarta Post