Fithra Faisal: Jakarta Remains as Business and Economic Center
Reported by Anita Karyati | Translated by Maria Inggita
Although the state capital (IKN) status will move to North Penajam Paser (PPU) Regency, East Kalimantan Province, Jakarta's role as the center of economic and business in Indonesia remains unchanged.
Jakarta's role in economic and business is not easy to move
The Economic Observer from the University of Indonesia Fithra Hastiadi assessed, in terms of infrastructure and ecosystem, Jakarta City was designed as the center of business and economy. Thus, relocating the state capital status would not change the existence and role of Jakarta as the center of economy and business.
"Jakarta's role in economic and business is not easy to move," he asserted.
Jakarta Secretariat Discusses Jakarta's Future CultureJakarta currently has a role as a capital city, center of business, services, trade, tourism, education, industry, and port. If it was no longer a capital city, other activities might develop further in Jakarta.
"Jakarta can continue to develop and advance even though it is not a capital city," he said.
According to him, the transition period for new capital development would take a long time. During the period, the economic ecosystem had not yet been formed. Because in the first five years, the government's focus was to build a central government.
"I predict that the new capital city won't become a center of economic activity. Like in Australia, where the center of economic activity is not in the capital city, Canberra, but in Sydney and Melbourne," he mentioned.
He saw that Jakarta's problems related to population density, traffic congestion, and flooding, would likely be reduced by expanding and accumulating the surrounding areas. Then, building a region with the metropolitan concept to empower the surrounding city.
"Those problems must be resolved quickly and effectively to support the future of Jakarta as an economic center. We hope the relocation of the state capital can reduce Jakarta's problems. So, urban problems can be solved better," he stated.
