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Jakarta’s status has changed: it is no longer a Special Capital Region (DKI). The government has officially declared Nusantara National Capital (IKN) in Kalimantan as the new capital city under Law Number 3 of 2022.
As a result, Jakarta’s status will change from the Special Capital Region (DKI) to the Jakarta Special Region (DKJ). Therefore, the roles and functions will also change according to Law Number 2 of 2024, which has been in effect since April 25, 2024.
A significant question that frequently comes up after Jakarta lost its capital status is about the impact of the transition on the city’s economy, given its over 11 million inhabitants.
It’s no surprise that, with various economic activities and substantial budgets from both national and regional governments, Jakarta has a massive economic potential.
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Sri Haryati, Assistant to the Provincial Secretary for Economy and Finance, confirms that Jakarta will continue to grow and thrive as it does today.
“Since 2019, President Jokowi has stated that Jakarta will continue to be prioritized as a business city, financial center, trade hub, and regional and global service center,” she said during the Jakarta 2024 Outlook Seminar on 'Optimizing Economic Growth and Stabilization' in December 2023.
Regarding its functions and roles, she added that the Jakarta Provincial Government has set up economic plans and strategies for mitigating the impact following the relocation of the National Capital (IKN).
“We have established the future pillars for the city, including the economic aspect, public welfare, a compact and sustainable city, effective and efficient mobility, and a smart city,” she noted.
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PricewaterhouseCoopers (PwC), a consulting firm assigned to conduct research and future economic projections, has made predictions about Jakarta’s economic growth under various scenarios.
“If Jakarta remains the capital, the growth rate of Gross Regional Domestic Product (GRDP) would be 9.7 percent. However, if everything is relocated and we (the Jakarta Provincial Government) do not take action, it will fall to 8.7 percent,” she revealed.
With intervention, Jakarta’s GRDP growth could surpass the current level and reach 10 percent. Additionally, Jakarta’s economic growth would still be 5.8 percent, even with an inflation rate assumed at 4.2 percent.
Haryati explained that "intervention" refers to measures for preparing a new strategy after Jakarta is no longer the capital. PwC has projected that the GRDP could reach Rp 6.91 trillion by 2030 if the right strategy is implemented.
This is higher than the current GRDP of Rp 6.69 trillion for DKI Jakarta. Without intervention, the GRDP is estimated to be only Rp 6.31 trillion.
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Nevertheless, Haryati admitted that the challenges in achieving this goal are momentous. Local government must create new economic opportunities, especially because government spending will decrease.
The active participation of all stakeholders, particularly Jakarta’s business community, is crucial for developing effective and efficient business opportunities and a better environment. This includes efficient transportation and logistics for businesses.
So, that’s a quick look at what might happen to Jakarta’s economy after it’s no longer the capital. There’s no doubt that Jakarta is still a major player in national economic growth.
Therefore, collaboration from various parties, including the government, citizens, and business actors, is essential to continue supporting the current growth.
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With over 34 years of experience in the transportation and logistics industry, PT Serasi Autoraya, also known as SERA, remains committed to actively supporting the government’s initiatives and policies to achieve equitable national economic growth.