June 25, 2024
JAKARTA – As Jakarta celebrates its 497th anniversary today, many believe it will be the city’s last as the nation’s capital, now that President Joko “Jokowi” has signed Law No. 2/2024 on the special region of Jakarta. Even acting governor Heru Budi Hartono says so.
But official narratives do not always give the whole picture. It is true that Jakarta will eventually lose its privileges as the seat of state power, but that day is still quite a way off.
Article 63 of the law says that after it is enacted, Jakarta will remain the capital city of Indonesia until the president signs a decree on the relocation of the capital city from Jakarta to Nusantara in East Kalimantan, which has not materialized yet.
But even if such a presidential decree were signed today, Jakarta’s long-held status as the national capital would stand. Article 64 of the law says government affairs can still be conducted in Jakarta and that the city can serve as the seat of state institutions and other organizations as long as representative buildings and the supporting systems of the government are in place in Nusantara.
Considering the various challenges, especially with funding, it may take the government years to finally relocate the capital city, a dream of President Jokowi’s that may be passed on to president-elect Prabowo Subianto.
Jakarta has been the state capital for the vast majority of Indonesia’s independence, which began in August 1945, although founding president Sukarno temporarily relocated the capital to Yogyakarta twice, in 1946 and 1949, and to Bukittinggi in West Sumatra in 1948 in response to the exigencies of the war of independence.
This time around the justification for the relocation is completely different. The government has said Jakarta is no longer fit to serve as the capital because, among other reasons, of the strain on infrastructure and services amid high population growth. Studies have found Jakarta is sinking and that the city remains unable to address its flooding and traffic congestion issues, which bode ill for the government’s future there.
Therefore, the most frequently asked question of Jakarta residents regarding the capital’s relocation is whether the central government will leave the city high and dry, to deal on its own the lingering impact of its massive development over the last few decades.
Nevertheless, the change of capital will not matter to many, including the business community. Jakarta will retain its magnetic pull as it is able to provide a wide range of services that few other places in the country can.
For many years to come, Jakarta will play a strategic role in the national economy. Official data shows that about 70 percent of the country’s money circulation occurs in Jakarta, making it the center of economic activity.
Last year, Jakarta accounted for 16.77 percent of GDP and 11.70 percent of national investment.
The city has also emerged as a top tourist destination, thanks to its culinary offerings, history and culture, and this will continue even when Nusantara takes on capital status. However, the city government may need to step up marketing efforts to attract more tourists.
Benni Aguscandra, the head of the Jakarta’s investment and one-stop service agency, said the capital relocation could bring new investment to Jakarta, particularly in the sectors of tourism; meetings, incentives, conferences and exhibitions (MICE); property; and transportation.
Such optimism makes sense, as the central government plans to transform Jakarta into an agglomeration area after the capital’s relocation. This agglomeration zone will bring together industry, trade, transportation and other strategic factors to support the area’s economy and the well-being of its people.
The construction of an MRT connecting Jakarta and its satellite cities of Tangerang and Bekasi will facilitate the formation of this agglomeration area.
For millions of people outside of Jakarta, the city still represents yearned-for dreams. As the old song title goes, “Siapa Suruh Datang Jakarta?” (who asked you to come to Jakarta).