28-3-2024 (JAKARTA) In a move that underscores the enduring significance of Jakarta as a crucial economic hub, Indonesia’s parliament has bestowed a special status upon the metropolis, ensuring its continued role as the nation’s economic epicentre amidst plans to relocate the capital city to the island of Borneo. The decision, formalized on Thursday, March 18th, through a new law, highlights the government’s commitment to preserving Jakarta’s status as a world-class city, even as the administrative seat of power prepares to shift to the ambitious $32 billion city of Nusantara, currently under construction in the jungles of East Kalimantan.
The relocation of Indonesia’s capital, a flagship project championed by outgoing President Joko Widodo, is a monumental undertaking aimed at redistributing wealth and development across the sprawling archipelago, historically concentrated on the island of Java. Recognizing Jakarta’s pivotal role in driving the nation’s economic growth, the new law paves the way for the creation of an “agglomeration” council, tasked with harmonizing development plans between the capital and its surrounding satellite cities.
Addressing the significance of this move, Home Affairs Minister Tito Karnavian underscored the imperative of ensuring Jakarta’s continued competitiveness on a global stage, stating, “After it’s no longer a capital, it still has to be sealed with a special status so that it can accelerate economic growth and increase contribution to the country’s GDP.”
The decision to bestow a special status upon Jakarta is a testament to the city’s resilience and its enduring role as a driving force behind Indonesia’s economic prowess. Even as the administrative functions shift to Nusantara, Jakarta’s unique position as a financial and commercial hub will remain undiminished, with the government recognizing the need to nurture and cultivate its growth to compete with other world-class cities.
Under the current framework, Jakarta will retain its status as the nation’s capital until President Widodo issues a formal decree officially designating Nusantara as the new capital city, an event expected to take place later this year. The government’s ambitious timeline envisions the upcoming independence day ceremony on August 17, 2024, being held in Nusantara, with thousands of civil servants slated to relocate to the new capital by the end of the year.
As Indonesia embarks on this historic transition, the decision to grant Jakarta a special status underscores the government’s commitment to balanced development, ensuring that the nation’s economic powerhouse remains a vibrant and thriving metropolis. By fostering continued growth and investment in Jakarta, the government aims to leverage the city’s established strengths while simultaneously nurturing the development of Nusantara as the new administrative heart of the country.
