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Jakarta to remain Indonesia’s economic hub, new law says
The legislation also requires direct elections for the city's governor and deputy governor.
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Commuters drive to their homes during sunset in downtown Jakarta, on Aug. 1, 2023. (AFP/Bay Ismoyo)
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akarta will stay the nation’s economic center even after the city of Nusantara is granted national capital status, a recently passed law says, alongside provisions that call for Jakarta to become a “global city” and require its leaders to be directly elected.
During a plenary session on Thursday, House of Representatives lawmakers passed the Jakarta Special Designation Law, which provides a legal framework for the city’s position after Nusantara in East Kalimantan becomes the country’s capital, a move slated for August.
After speedy deliberations, the bill, which was brought forward two weeks ago, is now awaiting President Joko “Jokowi” Widodo’s signature to come into force. The transfer of national capital status, meanwhile, is awaiting a presidential decree.
Articles 3 (2) and 4 of the law, according to a copy obtained by The Jakarta Post, call for Jakarta to be the nation’s economic center and a “global city” as a center of trade, services, finance and business both domestically and internationally.
Home Minister Tito Karnavian said that while Jakarta would lose its national capital status, it would be afforded a special status that would maintain or even increase its contribution to the national economy.
“The government and lawmakers are committed to sustaining the rapid economic growth [of Jakarta], which can not only stimulate economic activity in Jakarta and Indonesia, but also [allow it to become] an important economic hub in Southeast Asia and the world,” the minister said during the Thursday plenary session.
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