Thomas Rizal, Jakarta – The bustling metropolis of Jakarta had always been a dream place for most Indonesians to make a living, but reports have shown that the capital has been witnessing fewer newcomers.
In the past, Jakarta was a magnet for job-seekers. There was even a saying that went "the capital is far more ruthless than one's stepmother" – an advice for people looking to try their luck in Jakarta. Many people would choose to make their move post-Eid, after listening to the returning family members' experience in working in Jakarta. But this year, fewer people are moving to Jakarta.
Jakarta's civil registration office (Disdukcapil) reported that the province only saw 1,038 newcomers from different regions during April 16-22 or after the Eid holidays. This is far less than what Disdukcapil had projected, as they predicted Jakarta would record between 10,000 and 15,000 people this Eid. Last year's post-Eid break, Jakarta witnessed 25,918 newcomers.
This was not the first time that such a decline happened. Jakarta only had 136,200 newcomers throughout 2023, down from 139,740 people (2021) and 151,752 people (2022). The office reported that the province's newcomer volume reached 9,137 people in January 2024. The number then dropped to 6,300 newcomers the following month and slightly picked up to 6,657 people in March.
"This marks a huge decline from the monthly newcomer volume in 2022 and 2023, which reached 11,000 and 12,000 people, respectively," Jakarta Disdukcapil's head Budi Awaluddin said.
While many people go to Jakarta to find better job opportunities, most of the newcomers do not have the adequate educational level that can help them secure high-paying jobs. Only 21.47 percent of the 1,038 newcomers in the 2024 post-Eid break have attained an educational level higher than high school.
"Those looking to move to Jakarta should equip themselves with relevant skills to meet the needs of the flourishing formal sectors in the capital," Budi said.
What causes the decline in newcomers?
A recent focus group discussion held by B-Universe Media Holdings zeroed in on the phenomenon of Jakarta losing its sparkle for many Indonesians. Speakers include Jakarta Disdukcapil's Budi Awaluddin, urban planning analyst Nirwono Joga, sociologist Paulus Wirutomo, financial economist Mohamad Ikhsan Mojo, as well as Ateng Hartono, a deputy at the Central Statistics Agency (BPS). Abdul Malik Sadat Idris, a director at the National Development Agency (Bappenas), also shared his insights at the forum.
B-Universe's executive chairman Enggartiasto Lukita attributed the decline in urbanization to the rising digitalization and work-from-anywhere culture.
"Digitalization has brought a positive impact on declining urbanization. We see the increase in job opportunities that make use of the internet, such as by becoming a Youtuber. The rise of digital contents that give a snapshot of life in a city can also nudge people into moving there," Enggartiasto said.
He added: "Imagine if a Youtuber makes a video that shows that a city has something that Jakarta does not, people watching it would feel that there is no need to move to Jakarta."
The region's economic growth, coupled with the development works that the sub-national government is pursuing, also led to the decline in urbanization in Jakarta, according to Enggartiasto. The former trade minister said he hoped he could see more people contributing to their own region's development, so they would not have to go to Jakarta to look for jobs.
"Whether this is a positive or negative thing, this is something that we need to discuss. But one thing for sure is that we need to appreciate non-Java-centric development," Enggartiasto said.
During the discussions, BPS revealed a shift in migration patterns from Java to outside the island, including Sulawesi and Kalimantan – which is home to Indonesia's future capital Nusantara. The government's plan to move the capital from Jakarta to Nusantara is expected to spur a more equitable, non-Java-centric development. It will also drive more people to move to Kalimantan, according to Ateng.
BPS reported that migration would usually follow the establishment of facilities and development in the region's leading sectors. This has happened to Batam, Riau Islands, as the city only began to witness more newcomers once it was more developed.
Nirwono underlined the need to develop supporting facilities in other regions as a means to spur a more equitable migration pattern. According to Paulus, all cities across the archipelago should develop their industrial sectors, so people do not gather in one city only.
"Even an industry that is not as sophisticated can help provide jobs for people from the villages. So rather than having all of them packed in Jakarta, the people can be equally distributed to other regions," Paulus told the forum.
More people are now eyeing the satellite regions such as Bogor, Depok, Tangerang, and Bekasi – also known as Bodetabek – as they become more developed, according to Budi. South Tangerang has become one of the cities that is popular among Indonesians as the number of newcomers continues to grow each year. People are also losing interest in Jakarta due to the high living costs, not to mention the lack of affordable housing. Despite having moved to Bodetabek, many of these people's identity cards state that they are still living in Jakarta.
"Because of this, many of them had to go back to Jakarta to vote in the recent election," Budi said.
The presence of industrial parks in other regions is also among the reasons why people are eyeing other places outside Jakarta.
Indonesians mainly move to seek work, and industrial estates are often hailed as a major driver of job creation. Meet Fahri, a 31-year-old man who has come to Jakarta for work. While he got accepted for a job in Jakarta's Grogol, Fahri said some of his friends chose to make a living outside the capital.
"My friends from Pekalongan are also moving out of the city for work. There are some who work in Bekasi, while others find jobs outside Java. We now have industrial parks in other regions, so that is why they are not going to Jakarta," Fahri told Beritasatu on a separate occasion at Jakarta's Senen Station.
As the satellite cities see more inhabitants, Ikhsan Mojo warned of the potentially rising urban poverty in these areas.
"The urban poverty that Jakarta faces has now spread to the satellite regions, including South Tangerang and Bekasi amidst the shift [in migration patterns]," Ikhsan stated at the focus group discussion.
What about Jakarta's future?
Despite the declining number of inter-province arrivals, Jakarta remains an economic hub for Indonesia. The government reported that Jakarta was only second to West Java in terms of the total investment it attracted throughout 2023.
Jakarta amassed approximately Rp 173.7 trillion (about $10.7 billion) in investments, while West Java's stood at Rp 222.6 trillion. Jakarta still makes up 16.77 percent of Indonesia's gross domestic product (GDP). About 70 percent of Indonesia's circulation of money takes place in Jakarta."So it is impossible to simply neglect Jakarta because it still has its charm," Paulus told the forum.
The capital relocation does not mean the government will stop developing Jakarta, according to Bappenas. Indonesia even dreams of turning Jakarta into a global city.
"The government will continue to develop Jakarta as a business city, financial city, trade center, and the services center that are of regional and global level," Abdul said.
But to be a global city, Jakarta would require Rp 561 trillion to fund its infrastructure development, Bappenas' estimates showed. To this end, Jakarta could try making use of blended finance.
The government will also need to make the necessary policy interventions and seek strategic investments while involving the private sector. The "global city" dream also calls for collaboration between the regional governments, as well as creative financing. All this combined would make Jakarta a green, global city that can drive Southeast Asia's economic growth.
[B-Universe reporters Alfida Rizky Febrianna, Sella Rizky Deviani, and Vinnilya also contributed to the story.]
Source: https://jakartaglobe.id/news/jakarta-loses-its-sparkle-amid-fewer-newcomer