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Jakarta Property to Likely Rise in Value Post New Capital City Relocation

27 August 2022 00:19 WIB

TEMPO.CO, Jakarta - Property observer from Indonesia Property Watch Ali Tranghanda said that the construction of the New Capital City (IKN) of Nusantara in East Kalimantan will increase the prices of properties in Jakarta.

"Will this desolate Jakarta? Not really. It can only be like that if for example there is a policy of the central banking, finance, and stock exchange all having to move to IKN," said Ali on Friday, August 26, 2022.

However, as long as the stock exchange and national financial center are still centered in Jakarta, the city will continue to be seen as Indonesia's business center. However, Ali warned of a possible sub-urbanization as a result of the capital city's relocation to East Kalimantan.

Suburbanization will be seen in Jakarta's satellite areas that were previously underdeveloped but are slowly getting ready to grow into a city equivalent to Jakarta.

"I see this as a good thing. We first look at the vision and goals of IKN development because currently around 50 percent of the economy and population are concentrated in Java, so there is no equal distribution," said Ali.

Vice President of Finance - Strategy and IR Role 99 Group Indonesia Timothy Alamsyah said that the property market is very massive, especially the property market in Jakarta. Timothy believed that moving the capital to Kalimantan will make Jakarta a more comfortable place to live, reduce pollution levels, and reduce congestion so that property prices in Jakarta will certainly increase.

"In my opinion, if there is a relocation of the national capital so that the density in Jakarta is reduced, then this is something good for property price increases in Jakarta," he said.

“In my opinion, it will be a good thing for Jakarta’s property price increase if the capital city is relocated and reduces the congestions in Jakarta,” he added. 

ANTARA

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