Jakarta welcomes new age with global ambitions

The Star

22-06-2025

JAKARTA: Jakarta will mark its 498th anniversary this weekend with a renewed vision of transforming into a global center for trade, services, finance and business, even as the city faces persistent questions about its livability and its impending loss of capital status.
This year's celebration adopted the theme 'Jakarta, a Global and Cultural City', reflecting the city's long-term ambition to evolve into a major international metropolis once it formally relinquishes its role as Indonesia's capital.
The transition will become official when President Prabowo Subianto issues a decree naming Nusantara, a US$32 billion megaproject in East Kalimantan that was initiated by his predecessor Joko 'Jokowi' Widodo, as the new seat of government.
The House of Representatives has passed legislation granting Jakarta special administrative status after the relocation, ensuring that the city remains the country's primary economic engine and a global hub for trade, finance and service.
Even without its capital title, many believe Jakarta is poised to thrive; retaining its economic clout and playing a central role in driving national growth.
'Jakarta is still very relevant. It remains the country's economic powerhouse. Its contribution to the national economy is too significant to ignore,' Aditya Perdana, a lecturer at the University of Indonesia (UI), told The Jakarta Post on Friday.
Home to approximately 11 million people, Jakarta is the most densely populated region in the country and contributes nearly 17 percent to the national gross domestic product (GDP).
A worker walks in front of the State Palace on Nov. 10, 2024, at the government offices complex in the Nusantara Capital City (IKN) in North Penajam Paser, East Kalimantan. President Prabowo Subianto has said that within the next five years, he will make the new capital city the center of government political activities, where most of his administration's executive, legislative and judicial activities will take place. - Photo: Antara file
Jakarta Governor Pramono Anung, who took office in February, has emphasised that his administration will not 'wind Jakarta down', but instead lay the foundation for the city to emerge as an innovation-driven, globally competitive metropolis.
Last week, the Jakarta administration launched an eight-volume blueprint that outlines a comprehensive strategy to place the city among the world's top 20 global cities by 2045, a move that Pramono described as a 'critical milestone' in Jakarta's transformation.
As part of this vision, the administration is also preparing to roll out the Jakarta Collaborative Fund (JCF), an initiative aimed at boosting financial independence by reducing reliance on conventional revenue sources such as taxes, levies and dividends.
'I believe Jakarta has the potential to become not just a global city, but also the leading gateway of Asean,' Pramono said last week at the 2025 Jakarta Future Festival (JFF).
"I invite all stakeholders to help shape Jakarta's future as a global city that upholds public welfare and shared values,' he added.
While Jakarta pushes forward with its post-capital vision of becoming a global city, uncertainty remains over whether President Prabowo will fully commit to the relocation.
'If, say, in 2026 or 2027, the president concludes the funds aren't sufficient, he could easily shelve the relocation,' Aditya said.
'The project hinges entirely on political will and financial feasibility.' Despite its strong ambitions, the public cautions that Jakarta must first tackle its long-standing issues, such as chronic traffic congestion, seasonal flooding, worsening air pollution and inefficient waste management, if it hopes to achieve its global city aspirations.
Nineteen-year-old Kusnadi who lives in North Jakarta, an area sinking up to 15 centimeters a year and home to Indonesia's busiest port, said coastal flooding and deteriorating air quality continue to disrupt daily life.
'Almost every day, I feel irritated by the pollution from the roaring trucks,' he told the Post, adding that he hopes the government will adopt concrete solutions to address this.
Wahyu Andre Maryono, who lives near the refuse-derived fuel (RDF) plant in Rorotan, North Jakarta, echoed similar concerns.
The facility has reportedly emitted foul-smelling smoke, leading to dozens of cases of respiratory and eye infections in children.
'It's a cruel irony. As we celebrate Jakarta's rise as a global city, [this RDF plant] risks reducing the air quality and threatening residents' health,' Wahyu said on Thursday. - The Jakarta Post/ANN