Jakarta Remains as Economic Center Despite Capital City Relocation

TEMPO.CO, Jakarta - Knight Frank Indonesia, a property consultant agency, asserted that Jakarta and its surrounding regions will continue to be the center of economic activities despite the capital relocation to East Kalimantan.

"Will the relocation [of the capital] detriment Jakarta's activities? For the intensity more or less there will be adjustment considering that government offices will no longer operate in Jakarta later, but will this slow down Jakarta of course not because Jakarta still has six other functions that colors and dominate the activity in Jakarta," the agency's Senior Research Advisor Syarifah Mufakat said during an online discussion in Jakarta on Thursday, February 10, 2022.

According to Syarifah, Jakarta currently holds seven urban functions, namely as the state's capital, the center of businesses, services, trades, cultures, educations, industries and ports.

A similar opinion was given by the agency's associate director Andi Rina Martianti. Rina had spoken with several of her clients and they had no intention to relocate to the new capital city.

According to Rina, such decision might be connected with the fact that moving the capital city will take several stages, started with relocating government offices.

Previously, Jakarta Provincial Government has proclaimed their support for the Capital City relocation and believed that Jakarta will be better without such title.

Jakarta Deputy Governor, Ahmad Riza Patria also said that the city's development will continue on full course despite it not being the capital city anymore. Riza explained that the main reason is the massive economic burdens and Jakarta's status as the Indonesian economic core.

With Jakarta development's assured, the city might develop into a renowned city and global scale metropolia like New York or Washington DC.

ANTARA