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. The capital would likely cause East Kalimantan's inflation rate to increase slightly by nearly 0.1 of a percentage point in the short term and by 0.04 of a percentage point in the long term. The government estimated that the development of the new capital city would cost Rp466 trillion (US$34 billion). The Japanese conglomerate Softbank Group has offered to invest between US$30bil and US$40bil in the development of Indonesia's new capital city. "We want to move the capital because a city is important in spurring economic growth," said National Planning Agency (Bappenas) regional development deputy Rudy Prawiradinata.

Source: The Star January 23, 2020 08:03 UTC