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Urban management key as Jakarta transitions from capital status

Jakarta Globe - April 25, 2024

Vinnilya, Jakarta – Jakarta is set to lose its status as Indonesia's capital with the development of a new capital in Nusantara, East Kalimantan. Despite this, Jakarta will remain a crucial economic hub. Urban planning expert Nirwono Joga emphasized the necessity of effective urban management to ensure Jakarta's global competitiveness after the capital relocation.

"The central government should improve the Greater Jakarta Development Cooperation Agency (BKSP), which is currently not functioning optimally," said Nirwono Joga during the Investor Daily Talk program on Tuesday.

Nirwono highlighted that the inefficiency of the BKSP in the Jakarta metropolitan area could impede government efforts in various programs, including transportation improvements, flood control, waste management, and clean water provision. Harmonizing the development of the agglomeration areas between Jakarta and its neighboring cities of Bogor, Depok, Tangerang, and Bekasi (Greater Jakarta) is crucial.

According to Nirwono, local leaders in Jakarta and its neighboring cities have differing perspectives and interests. However, discussions about Greater Jakarta issues should have a unified understanding, especially concerning transportation, flooding, immigration, and other issues.

"These discussions should be unified, but due to different political considerations and interregional interests, there's a lack of unity. Without assertiveness from each region, it will be difficult to implement any program," he explained.

Despite losing its capital status, Jakarta will continue to be the national economic growth center. It will also remain an ideal national development driver, stimulating the development of cities both within and outside Java Island.

While Jakarta still lags behind neighboring countries like Singapore, it is not far behind similar cities such as Kuala Lumpur, Bangkok, and Manila.

"These three cities are more or less on the same level. Jakarta is not far behind them, particularly in terms of the global city index," Nirwono concluded.

The government estimates Jakarta will need approximately Rp 561 trillion (around $34.8 billion) in infrastructure funding to become a global city, especially after losing its capital city status.

The government aims to move the capital from Jakarta to a future city called Nusantara in East Kalimantan. Despite the capital relocation, President Joko "Jokowi" Widodo wants Jakarta's development to remain a priority and aims to turn it into a global city, according to the National Development Agency (Bappenas). However, this ambition requires significant funding.

"The government will continue to develop Jakarta as a business city, financial center, trade hub, and a regional and global services center," said Abdul Malik Sadat, a director at Bappenas, during a group discussion at B-Universe's headquarters in PIK 2 on Tuesday.

"To make Jakarta a global city, we would need Rp 561 trillion for infrastructure development. We can obtain the funding through blended finance," Abdul added.

Source: https://jakartaglobe.id/business/urban-management-key-as-jakarta-transitions-from-capital-statu