Indonesia’s tourism and creative economy minister Sandiaga Uno said the relocation of the capital city from Jakarta would bolster the economy of not just Indonesia, but also that of Malaysia as it will see more tourists flocking to the region.

“I think it’s a win-win proposition because tourism activities are going to increase in that part of the country. It also has the potential to boost local economic activities.

“We (Indonesia) also believe that this will create a rebalancing of growth in not only Java but also Kalimantan and Indonesia as a whole.

“I believe there’ll be a spillover of tourists coming both ways,” the minister told Bernama on the sidelines of the Asean Tourism Forum (ATF) 2023 being held here from Feb 3 to 5.

Themed “Asean: A Journey to Wonderful Destinations”, ATF 2023 is the largest tourism event in the region.

It aims to develop major regional and international tourism destinations, as well as strengthen the position of Asean as an accelerator of economic growth and to create jobs.

Last month, during his official visit to Indonesia, Prime Minister Anwar Ibrahim noted that the development of Nusantara would benefit the regional economies of Sabah and Sarawak.