Jakarta aims for top spot in Global City Index

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Aerial View of Jakarta Downtown Skyline Indonesia, Asia

Becoming the global city it aspires to be after losing its status as the state capital may be a challenging journey for Jakarta. But recent discussions have indicated that the 2024 general election holds the potential to usher in new opportunities for the city.

At a recent discussion organised by the Jakarta Development Planning Board, the head of the board shared Jakarta’s vision of transforming into the national economic hub and a global city. This vision is outlined in a bill regarding Jakarta’s special region status.

The discussion aimed to explore Jakarta’s evolving identity as it prepares to relinquish its status as the national capital to Nusantara in East Kalimantan, following the enactment of the Nusantara Capital City (IKN) Law. This change necessitates the introduction of new regulations for Jakarta to maintain its prominence and avoid being reduced to the status of other regions in Indonesia.

To achieve the status of a global city, there are three key indicators: business activity, human capital, and information exchange. A global city should house more than 10 of the world’s 500 largest companies and have over 100 unicorn startups. In the realm of human capital, a city should boast a significant number of top-ranking universities. Furthermore, a city should possess robust infrastructure, including comprehensive 5G network coverage, to facilitate efficient information exchange. For the moment, Indonesia has 6 unicorns.

Jakarta Development Planning Board’s members expressed optimism that the simultaneous presidential and legislative elections in 2024 could pave the way for implementing the master plan outlined in the proposed bill, especially in the Greater Jakarta area. This collaborative effort would involve local authorities in Jakarta and its satellite cities like Bogor, Depok, Tangerang, and Bekasi to work together more effectively to create a new administration entity and propel Jakarta towards becoming a global city.

While Jakarta currently holds the 67th position in the Global City Index, it lags far behind the advanced cities that occupy the top five spots, namely New York, London, Paris, Tokyo, and Beijing. Nevertheless, Jakarta undeniably possesses substantial potential for further positive development.

In 2014, a study conducted by AT Kearney consistently surveyed and researched 84 cities, categorizing them into advanced cities (Global Cities Index) and developing cities (Emerging Cities Index). The findings highlighted significant progress among cities in Asia, and Jakarta emerged as one of the standout examples of an advancing city with considerable potential. According to the report, Jakarta was deemed the city most likely to evolve into a global city within the next 10 to 20 years.

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